RBI allows SIPs in T-Bills for retail investors via retail direct platform

In a move set to simplify government securities investment for individuals, the Reserve Bank of India (RBI) on Wednesday announced the launch of Systematic Investment Plans (SIPs) for Treasury Bills (T-Bills) via its Retail Direct platform. The announcement was made by RBI Governor Sanjay Malhotra during the central bank’s bi-monthly monetary policy meeting on Wednesday.

This strategic step aims to make T-Bill investing more accessible and disciplined, mirroring the SIP model that has become popular in mutual fund investing. It allows retail investors to schedule automated, periodic investments in short-term sovereign debt, helping inculcate a long-term savings habit while benefiting from the safety and liquidity of government-backed instruments.

Launched in November 2021, the Retail Direct portal was introduced to help retail investors open Gilt accounts directly with the Reserve Bank of India under the Retail Direct Scheme (RDS). The scheme enables individuals to participate in primary auctions of Government Securities (G-Secs) and also trade them in the secondary market.

Since its inception, the platform has seen continuous upgrades, including the addition of new investment products and payment options. A notable enhancement was the launch of the Retail Direct mobile app in May 2024, making access and transactions even more convenient for investors.

Investing in T-Bills

T-Bills are short-term debt instruments issued by the Government of India to meet temporary liquidity needs. They come with maturities of 14, 91, 182, and 364 days. These securities do not offer interest but are issued at a discount and redeemed at face value, generating returns through capital appreciation.

For example, if a 91-day T-Bill has a face value of Rs 130 and is issued at Rs 128, the investor earns Rs 2 upon maturity. The minimum investment amount is Rs 10,000, and investments must be made in multiples thereof.

By enabling SIPs in T-Bills, the RBI is bringing fixed-income investing into the digital age. Investors will now be able to plan and automate their G-Sec purchases, removing the need for manual bidding in every auction.

This builds on the RBI’s earlier update in July, when it introduced auto-bidding on the Retail Direct portal and app, allowing users to set investment preferences—including tenor, amount, and frequency—using customizable Auto-Bid Rules. These rules are automatically triggered when the T-Bill auction window opens and can be modified or cancelled anytime.

Expert Views

The financial community has widely welcomed the move. Vishal Goenka, Co-Founder of IndiaBonds.com, said the initiative will help retail investors deploy idle funds from low-yield current and savings accounts (which offer around 2-3%) into higher-yielding instruments with sovereign backing.

Jyoti Prakash Gadia, Managing Director at Resurgent India, called it “a positive step” that reflects RBI’s proactive approach to deepen financial inclusion and strengthen the domestic bond market. Poonam Tandon, Chief Investment Officer at IndiaFirst Life, said the move was part of a broader, balanced monetary policy stance that encourages more participation from individuals in fixed income.

The announcement came alongside the RBI’s decision to hold the repo rate steady at 5.5%, with the Monetary Policy Committee (MPC) maintaining a neutral stance. Despite low inflation, the central bank appears to be treading cautiously amid ongoing global uncertainties, including recent U.S. tariff hikes on Indian exports.