The Reserve Bank of India (RBI) has launched a systematic investment plan (SIP) feature for treasury bills (T-bills) under its Retail Direct scheme, enabling retail investors to automate both investment and reinvestment in primary auctions of T-bills.
“To enable investors to systematically plan their investments, an auto-bidding facility for treasury bills, covering both investment and reinvestment options, has been enabled in Retail Direct. The new functionality helps investors to mandate automatic placement of bids in primary auctions of T-bills,” the RBI said in a statement.
This move is expected to boost retail participation in short-term government securities by bringing the discipline and convenience associated with mutual fund SIPs into the G-Sec investment space.
Launched in November 2021, the RBI’s Retail Direct portal allows individual investors to open gilt accounts directly with the central bank and participate in both primary and secondary markets for government securities, including T-bills, dated G-Secs, State Development Loans (SDLs) and Sovereign Gold Bonds (SGBs).
Data from the central bank suggests a growing preference among retail investors for treasury bills over other instruments like central and state government bonds or sovereign gold bonds.
“We are expanding the functionality in the RBI Retail Direct platform to enable retail investors to invest in treasury bills through systematic investment plans,” said RBI governor Sanjay Malhotra. He added that the initiative aligns with the broader goal of enhancing financial inclusion and democratising access to risk-free government-backed instruments.