RBI MPC Outcome: At the second bi-monthly monetary policy committee (MPC) meeting outcome for the financial year 2025-26 (FY26), the Reserve Bank of India (RBI) Governor Sanjay Malhotra announced the launch of the auto-bidding feature for Treasury Bills (T-Bills) in the Retail Direct Platform on Wednesday, August 6.
The RBI’s Retail Direct Platform allows retail investors to buy Government Securities (G-Secs) in primary auctions as well as buy and sell G-Secs in the secondary market. The portal was launched in November 2021 to facilitate retail investors to open their Gilt accounts with the RBI under the Retail Direct Scheme.
What is Auto Bidding Facility for T-Bills?
To further facilitate the ease of investing in T-Bills issued by the government and enable investors to systematically plan their investments, the RBI Governor today announced an auto-bidding facility.
This feature will cover both investment and re-investment in T-Bills, and has been enabled in the Retail Direct portal. “The new functionality helps investors to mandate automatic placement of bids in primary auctions of T-bills,” the RBI statement said.
This facility will help in the automatic placement of bids in the primary auctions of T-bills as per the bidding frequency and bid amount specified by the investors, by using the NACH (National Automated Clearing House) mode of payment, according to the details specified on the RBI Retail Direct platform.
What are T-Bills?
T-Bills, or Treasury Bills, are short-term loans that you give to the government. In return, the government promises to pay you back after a few weeks or months — with a little extra money as a reward.
The T-Bills, like all bonds, are issued by the RBI on behalf of the government. Unlike other bonds, where you earn interest, you buy T-Bills at a discount, and when they mature, you get the full face value. The difference between what you paid and what you get back is your earnings.
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