Treasury Bills via RBI Retail Direct: 91-Day at 5.57%, 364-Day at 6.29%, Next Auction 14 October

A one-year Treasury bill now yields roughly what banks pay on FDs of more than a year. The 364-day bill’s cut-off yield at RBI’s 7 October auction, 6.2869%, falls inside the 6.00%–6.75% range RBI lists for term deposits of more than a year. Individuals can buy Treasury bills through RBI’s Retail Direct portal. At the 7 October auction, the cut-off yields were 5.5747% on 91-day bills, 6.0999% on 182-day bills and 6.2869% on 364-day bills. The next auction is on Wednesday 14 October, and individuals can bid “on non-competitive basis, as retail investors”, as RBI’s 9 October notice says.

Treasury bills: how they pay you

A T-bill pays no interest. You buy it at a discount and receive the full face value, ₹100 per unit, on maturity. Your return is the difference. At the 7 October auction (RBI cut-off result, PR 2026-2027/1268):

You can check RBI’s yield yourself: (100 − price) ÷ price × 365 ÷ days. For the 91-day bill, that gives 5.5747%. The figures match for all three tenors.

The 14 October auction

RBI’s notice says the auction is on Wednesday 14 October. Non-competitive bids are taken from 10:30 to 11:00 am, and payment is due on Thursday 15 October. For retail investors, “the allocation will be restricted to a maximum of 5 percent of the notified amount” (RBI auction notice, 9 Oct 2026). A non-competitive bidder doesn’t quote a price; the auction sets it, so you only learn the exact price and yield after the result is out. RBI says the auction is “Price based using multiple price method”, with competitive bids taken from 10:30 to 11:30 am.

Buying through RBI Retail Direct

RBI’s auction notice names rbiretaildirect.org.in as the route for individual bids. The usual sequence is: open a Retail Direct Gilt account, place a non-competitive bid for the bill and amount you want before the window closes, and pay from your linked bank account. The bills sit in your Retail Direct account until maturity.

The portal loads only with JavaScript, so our server couldn’t read its current rules. Check the documents needed to open an account, the minimum bid amount and any charges on the portal itself.

91-day rollovers or one 364-day bill?

Some savers prefer short bills and reinvest every three months. Here’s how ₹1 lakh compares, assuming (only for illustration) that every future 91-day auction clears at the same 5.5747%:

At the 7 October prices, the single 364-day bill pays more. Rollovers give you access to cash every quarter, but future yields can be higher or lower, and each rollover means another bid you have to remember to place.

Three things that surprise first-time T-bill buyers

1. No interest credits. Nothing shows up in your bank account until maturity, when the full face value is paid in one go. If you track your savings by monthly interest, a T-bill will look idle until the day it matures.
2. The yield is annualised. 5.5747% on a 91-day bill doesn’t mean you earn 5.57% in three months. On ₹1 lakh of face value, the gain is ₹1,370.80, about a quarter of a year’s return.
3. Yields change at every auction. RBI auctions Treasury bills on a regular calendar, and each auction sets a fresh price. The 7 October cut-offs are a guide to the 14 October auction, not a promise. After this week’s OMO sale and the tighter CRR floor, the direction of short-term yields is anyone’s guess, and we won’t predict it.

Before you bid: a short list

• Have the money in your linked account before payment day (15 October for this auction).
• Note the maturity date: 91, 182 or 364 days from settlement.
• Remember the 5% retail cap; RBI’s notice doesn’t say how allotments are scaled down if retail bids exceed it.
• Keep the RBI result press release for your records; it shows the cut-off price and yield.

T-bill vs FD: who may it suit

RBI’s website gives a range of 6.00%–6.75% for term deposits of more than a year (Lending/Deposit Rates panel). A T-bill may suit someone parking money for 3–12 months who is comfortable with a new portal and with not knowing the exact yield until the result. Someone who needs a fixed date and rate, or regular payouts, may prefer an FD; see RD vs FD and the FD premature withdrawal rules. For long-term savings with tax benefits, read our PPF rules guide.

The gain on a T-bill is taxable. We haven’t set out the tax treatment here, so check it with a tax adviser before you invest.

A few common questions on Treasury bills before Wednesday.

FAQ

What did the 91-day T-bill yield at the last auction?

5.5747% at the 7 October cut-off, at a price of ₹98.6292 per ₹100.

Can I bid on 14 October?

Yes, as a non-competitive retail bidder, from 10:30 to 11:00 am, through Retail Direct.

Is the yield fixed when I bid?

No. As a non-competitive bidder you accept the price the auction produces, which RBI publishes the same day.

Is DICGC cover relevant?

No. A T-bill is a direct obligation of the Government of India, not a bank deposit.

Takeaway: if you want to try a T-bill, open your Retail Direct account before Wednesday. Bid for a small amount first so you learn the process.