The Reserve Bank of India (RBI) has permitted investments in Treasury Bills (T-Bills) through SIPs in the August 2025 monetary policy review. This facility will be available on the Retail Direct platform, enabling retail investors to participate in government securities through small, regular investments, similar to mutual funds.
In a significant decision made at the RBI's bi-monthly monetary policy meeting on August 6, 2025, the provision for retail investors to invest in Treasury Bills (T-Bills) through SIPs was announced. This facility will be accessible on the RBI's Retail Direct platform. The aim is to increase participation of the general public in government bonds and T-Bills and to simplify the investment process. Governor Sanjay Malhotra stated that this facility will be similar to mutual funds, bringing discipline and regularity to investments.
Retail Direct Platform Launched in 2021
The Reserve Bank launched the Retail Direct Scheme in November 2021. Through this, any ordinary citizen residing in any part of the country can directly invest in government bonds and Treasury Bills. Previously, investments on this platform were made manually, but now it has been given a new direction.
Now SIP in T-Bills Like Mutual Funds
RBI Governor Sanjay Malhotra announced during the bi-monthly Monetary Policy Meeting that the SIP facility will now be available on the Retail Direct platform. This means that investors can now invest in T-Bills regularly by having a fixed amount deducted from their account at set intervals. This facility will function similarly to SIPs in mutual funds.
With the addition of this new feature, investors will have the facility to invest regularly in their portfolio. Additionally, it will instill discipline in investment and develop a better perspective regarding returns. T-Bills have always been considered a safe investment option, and tools like SIPs will make them even simpler.
New Tools for Investors
The RBI has informed that along with this facility, some more technical tools will be added to the Retail Direct platform for investors. These tools will help in better controlling investment planning, scheduling investments, and auto-debit facilities.
Financial sector experts have appreciated this decision. Jyoti Prakash Gadia, Managing Director of Resurgent India, says that this is a positive step that will promote the participation of retail investors in government securities. Meanwhile, Poonam Tandan, Chief Investment Officer of IndiaFirst Life, has indicated this as a sign of a balanced policy.
No Change in Policy Rate
In the Monetary Policy Committee (MPC) meeting, it was decided to keep the repo rate stable at 5.5 percent. All six members of the committee unanimously voted in favor of maintaining this rate. The RBI has taken this step in view of the ongoing uncertainties in global markets and the domestic inflation situation.
What the Governor Said
Governor Sanjay Malhotra stated that retail investors should have more facilities for participation in government bonds and Treasury Bills. He said that the SIP facility will make investment easier and more systematic, which will benefit retail investors.
What are the benefits of SIP?
- Investment possible with small amounts every month
- Possibility of good returns in the long term
- T-Bills are better as a low-risk investment option
- Investors do not need an expert
- Discipline will be maintained in investment
Treasury Bills are short-term government securities that are issued for periods of 91 days, 182 days, and 364 days. The government guarantees these, so they are considered very safe. Now, with the SIP facility, investors can start with small amounts and include them in their portfolio.
How to use this facility
- Register on the Retail Direct platform
- Link with your bank account and KYC documents
- Select the SIP option and determine the investment amount and interval
- The amount will be deducted from your account at the set time and invested in T-Bills
Through this decision, the Reserve Bank has further strengthened its digital and retail focus. Small investors have now found a way for regular and transparent investment in options like government bonds.
