New Delhi: The Reserve Bank of India, one of the largest government institutions in the country, keeps making new announcements every day. RBI has now taken a surprising step to make the investment process easier for common investors, especially in treasury bills. RBI Governor Sanjay Malhotra has announced the launch of a Systematic Investment Plan in T-Bills through the Retail Direct Platform during the monetary policy meeting.
This initiative has been created on the lines of a mutual fund SIP. Its purpose is to enable the retail investor to invest in government securities. T-Bills remain a government undertaking. Therefore, it is considered risk-free. There is also no liquidity crisis in it. This makes it attractive for retail investors.
Know what is Retail Direct Platform is?
Do you know that the Retail Direct Platform was launched by RBI in November 2021 under the Retail Direct Scheme? Along with this, this platform provides individual investors the facility to open gilt accounts with the RBI and invest directly in government securities. Through this, investors can participate in the primary auction.
You can also trade these securities in the secondary market. At the same time, the launch of the Retail Direct mobile app in May 2024 has made this process very simple. With this, investors can manage it from their smartphones themselves. Constant updates in the system make investing in government securities more attractive for retail investors.
T-Bills are short-term debt instruments issued by India. They are used to meet the temporary liquidity requirements of the government. It is issued in certain periods. It has 14 days, 91 days, 182 days and 364 days. Anyway, T-Bills do not pay interest, but they are bought at a discount.
It can be redeemed at face value on maturity. At the same time, if a 91-day T-Bill with a face value of Rs 130 is purchased at Rs 128, then the investor will easily get Rs 130 on maturity.