Now You Can Invest In T-Bills Via SIP On RBI's Retail Direct Platform

In a move that is aimed at deepening retail participation in government securities, the Reserve Bank of India has announced that systematic investment plans will soon be enabled for Treasury Bills through its Retail Direct platform.

RBI's Retail Direct platform, launched in November 2021, allows individual investors to buy government securities in primary auctions as well as buy and sell them in the secondary market.

Since the launch of the Scheme, various new features, in terms of product as well as payment options, have been introduced, including launch of a mobile app in May 2024.

Until now, retail participation in short-term instruments such as T-bills was largely ad hoc. With the introduction of SIPs, retail investors will now be able to automate regular investments in these low-risk, short-duration instruments, much like mutual fund SIPs.

"We are expanding the functionality of RBI retail direct platform which will enable retail investors to invest in treasury bills through systematic investment plans," Governor Sanjay Malhotra said during the monetary policy announcement.

To enable investors to systematically plan their investments, an auto-bidding facility for T-bills, covering both investment and re-investment options, has been enabled in Retail Direct, the statement on developmental and regulatory policies said.

The new functionality helps investors to mandate automatic placement of bids in primary auctions of T-bills, it said.

The move is expected to boost financial inclusion, offer a stable alternative to bank deposits, and encourage retail participation in the fixed income market which is largely institutionalised.

SIPs in T-bills can particularly benefit risk-averse savers looking for steady returns with sovereign backing.