T-Bill SIP on RBI Retail Direct: Auto-Bidding Explained
Why in the news
RBI gave small investors a SIP-style route into T-bills through auto-bidding on Retail Direct.
Key facts
- A SIP means investing fixed sums at regular intervals, such as weekly or monthly.
- Retail Direct began in November 2021; investors open a Retail Direct Gilt (RDG) account with RBI.
- It allows primary auctions of G-Secs and T-bills and secondary market trading.
About T-bills
| Feature | Detail |
|---|---|
| Tenor | 91, 182 or 364 days |
| Pricing | Discount issue, face value redemption |
| Backing | Government of India |
| Suits | Conservative savers, including senior citizens |
Significance
- Wider retail participation and more market depth in government securities.
- Promotes financial discipline among small investors.
Exam angle
- Account type: RDG; T-bill tenors: 91, 182, 364 days.