Got cash just sitting in your savings account, barely earning 3%? The Reserve Bank of India (RBI) wants to give you another option. On January 7, 2026, the RBI will auction off ₹29,000 Crore in Treasury Bills—also called T-Bills. They’re often called “zero-risk,” but the real story is in the fine print. If you’re thinking about jumping in, you need to know what you’re signing up for.
Here’s What’s on the Table: The RBI is selling T-Bills with three different maturities—91 days, 182 days, and 364 days. These aren’t like Fixed Deposits. You don’t get regular interest payments. Instead, you buy the T-Bill at a discount. For example, you pay ₹98.50 for a ₹100 bill. When it matures, you get the full ₹100 back. That small difference is your profit.
Right now, these T-Bills yield around 5.25% to 5.54% per year. That’s a good deal more than a savings account, but still a notch below what you’d get with a long-term FD.
Don’t Miss the Fine Print:
Minimum Investment: You can’t just toss in pocket change. The minimum is ₹10,000, and you have to invest in multiples of that amount.
Non-Competitive Bidding: Good news for small investors—you don’t have to battle with banks over the price. Through the “Non-Competitive” route, you’re guaranteed an allotment at the Weighted Average Price set by big institutional bidders. Just keep in mind, retail gets only 5% of the total auction, so there’s a limit.
No Early Exit: Here’s the catch—unlike an FD, you can’t just pull out your money early with a penalty. The RBI doesn’t allow premature redemption. If you need cash before maturity, you’ll have to sell your T-Bill in the secondary market (NDS-OM). Not always quick or easy.
Taxes: This part stings a bit. Whatever you earn counts as Short Term Capital Gain (STCG). It gets added to your income and taxed at your slab rate. No special tax breaks here.
How to Apply The auction opens Wednesday, January 7, 2026. You have a tiny window—between 10:30 and 11:00 AM—to place your bid on the RBI Retail Direct portal or through participating banks. If you get allotted, your account gets debited on Thursday, January 8.
Bottom Line T-Bills are great if you want to park cash safely for a short while—the government backs them, so you’re not losing sleep over risk. But with yields stuck around 5.5% and full taxation, they won’t outpace inflation in the long run. They’re tools for liquidity, not for building wealth. Use them when you need safety and access, not when you’re chasing big gains.