RBI Revises Calendar for Auction of Treasury Bills

Treasury bills are short-term debt instruments that the Government of India (GOI) issues to meet its borrowing requirements for short-term.

On 17th May, 2024, The Reserve Bank of India (RBI) revised the calendar for the auction of GOI’s t-bills. Reserve Bank of India has announced the auction of GOI’s treasury bills as per the following details:

Source : RBI Press Release

The RBI, in consultation with GOI, will have the flexibility to modify the notified amount and timing for treasury bills’ auction based on the GOI’s requirements, evolving market conditions and other relevant factors.

RBI said that the calendar is subject to change, including for reasons such as intervening holidays. If such changes take place, they will be communicated through press releases.

What are Treasury Bills?

Treasury bills are short-term debt instruments issued by the Government of India (GOI) to meet its immediate financial requirements. They are highly liquid in nature and considered a safe investment since they are backed by GOI.  They are issued with three different maturity periods i.e., 91 days, 182 days, and 364 days. They are issued at a discount to their face value, which means that they are sold at a price which is lower than their nominal value. The investor’s return is represented by the difference between the purchase price and the face value. Learn How to invest in treasury bills in India?