Now you can do SIPs into T-bills via RBI’s retail direct platform; know how will it work and should you go for it

Keeping the repo rates unchanged at 5.5%, Reserve Bank of India (RBI) governor Sanjay Malhotra today announced that soon, individuals will be able to start an SIP, or Systematic Investment Plan (SIPs) in Treasury bills, or T-Bills, through RBI’s retail direct platform.

Treasury bills are considered one of the safest debt securities for parking short-term money. Let’s break down how this system works and discuss whether retail investors should take a dive into it.

What is RBI retail direct?

Launched in 2021, RBI retail direct allows investors to directly buy and sell various government securities (G-Secs) online, without the need for other intermediaries. At present, through the RBI Retail Direct portal, investors can

1. Open and maintain an RBI Retail Direct Gilt (RDG) Account

2. Open and maintain a Bond Ledger Account with CCIL

3. Participate in the non-competitive bid segment of primary auctions for Government Securities;

4. Subscribe to Sovereign Gold Bonds (SGB);

5. Invest in Floating Rate Savings Bond (FRSB);

6. Access NDS-OM platform for buying and selling of eligible Government Securities in the secondary market, along with various other services such as account statements, nomination facility, access to information related to coupon/redemption of government securities, etc.

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What are T-Bills?

T-bills, or Treasury bills, are money market securities that are issued by the government to meet its short-term financial needs. Think of them as a promissory note issued by the Indian government, where they promise to repay you at a later date. Treasury bills come with a maximum maturity duration of 364 days. T-bills are generally issued at a discount, and come with 4 maturity dates, namely 14 days, 91 days, 182 days and 364 days. The minimum amount required to invest in a T-bill at present is Rs 25,000.

So, say you buy a 91-day T-bill with a face value of Rs 130, at a discount of Rs 2. Hence, you purchased the said T-bill at Rs 128. Upon its maturity, you are eligible to receive the entire face value amount, i.e. Rs 130, resulting in gains for you.

T-Bill duration	YTM (Yield to Maturity)
91D (30/10/2025)	5.397
182D (29/01/2026)	5.5206
364D (30/07/2026)	5.5673

Yields as on August 5, 2025
Source: Clearing Corporation of India Limited, RBI

Last month, the RBI announced that the auto-bidding facility for investment in T-bills had been enabled in the RBI Retail Direct (RD) portal and App. This facility, complementing the existing manual bidding option, allows investors to set investment preferences, viz., T-bill tenor, bid amount, bidding frequency and validity period, by creating Auto-bid Rules that are executed automatically once the bidding window of the respective T-bill auction becomes active on the RD portal/App. These rules can be amended, paused or cancelled anytime by the consumer.

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Is it a good idea to invest in T-Bills via SIPs?

Experts say that liquidation can be a significant challenge.

While the facility of having SIP in T-bills can help retail investors to save money in a secure way for a short to medium-term goal. However, if money is required mid-way, then having desired liquidity may be a challenge. Says Abhishek Kumar, SEBI RIA and Founder at SahajMoney, “Retail investors can invest in T-bills through SIP, but they need to remember that, unlike bank deposits where they can liquidate the investment at short notice, in case of T-bills, they need to hold it till maturity as finding a buyer in the secondary market would be difficult”

According to Suresh Darak, Founder of Bondbazaar, T-bills can be a good avenue for investors to park their money safely for a short period of time. "In many cases, investors have a definite time frame in mind, such as 3 months or 6 months, when a large payment is due to come up, such as a car purchase or vacation. Since the expense outlay and timeframe are fixed, investors cannot speculate with this money and look towards safe avenues where their capital is 100% protected. In such situations, T-Bills provide an incredible opportunity to earn fixed returns through bonds backed by the Government", he says.

"With the introduction of the SIP facility, this avenue becomes even more appealing as investors can allocate a portion of their portfolio that they can keep re-investing in T-Bills, as older ones keep maturing. They can create a continuous cycle, wherein the investor buys T-bills for the first few months, and then repeatedly reinvests the principal as they mature. The investor will keep earning regular safe income, and can ‘withdraw’ the principal anytime by stopping the SIP and selling the bonds", he further adds.

Vishal Goenka, Co-Founder, IndiaBonds.com, highlights that investing in T-Bills can lead to financialisation of idle funds of investors in CASA (current and savings) accounts, which are barely earning a 2-3% yield. Hence, investing in T-bills would give retail investors higher returns.

However, this can be a positive step, as Vinayak Magotra, Founding Team, Centricity WealthTech, explains, since this move by the RBI makes a simple, low-risk investment avenue like T-bills, which was earlier dominated by institutions, more accessible for retail investors.

"It encourages disciplined saving through small, regular investments while giving individuals access to government-backed instruments. Over time, broader participation can reduce reliance on institutional demand, improve liquidity, and support more efficient price discovery in short-term debt markets", he adds.