Treasury Bill (T-Bill)

Treasury bills are short-term borrowings by the central government, issued for 91, 182 or 364 days. They pay no regular interest; instead they are sold at a discount and repaid at full face value, and the difference is the investor’s return.

Why It Matters

T-bill yields are one of the cleanest measures of short-term interest rates in India.

In India

An investor might buy a 364-day T-bill with a face value of ₹100 for about ₹94 and receive ₹100 a year later, earning roughly 6%.