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Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day. Treasury bills are zero coupon securities and pay no interest. Instead, they are issued at a discount and redeemed at the face value at maturity. For example, a 91 day Treasury bill of ₹100/- (face value) may be issued at say ₹ 98.20, that is, at a discount of say, ₹1.80 and would be redeemed at the face value of ₹100/-. The return to the investors is the difference between the maturity value or the face value (that is ₹100) and the issue price (for calculation of yield on Treasury Bills.

Features of the bond :

Issuer Government of India
Cut Off Price / Yield In case of Uniform Price Auction, bids at minimum discounted price determined at the auction, irrespective of bid prices tendered.
In case of Multiple Price Auction, bids up to minimum discounted price determined at the auction, at bid prices tendered at the auction.
Bids at offer prices lower than the cut off price will be rejected in case of both uniform and multiple price auctions.
Cost of Security Cut Off Price + Commission/Brokerage (0.06 per Rs 100)
Risks Attached Interest Rate Risk
Minimum Investment (Face Value) Rs 10,000/-
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