RBI Adds Auto-Bid Feature On Retail Direct For T-Bill Investors

Retail investors using the Reserve Bank of India’s (RBI) retail direct platform now have a simpler way to invest in Treasury Bills (T-Bills). As reported by the media, the Reserve Bank has rolled out an auto-bidding feature aimed at making the process more convenient, particularly for those who invest regularly in these short-term government securities. In this new option, users can set up some basic rules. For example, the maturity period they prefer (91, 182, or 364 days) can be chosen. They can also choose how much they want to invest. Also, they can choose how often they want the system to place bids. Once they do this, the system can automatically place bids without requiring any manual intervention.

To activate the feature, investors must link their bank account using a NACH mandate, which authorises automatic debits. The RBI has stated that the system will only place bids if there are sufficient funds in the account at the time of auction.

This automated option is being offered in addition to the existing manual bidding route. It’s meant for investors who would rather not track auction dates every week and prefer a more hands-off setup.

Investors will get alerts through SMS and email whenever a rule is triggered or a bid is placed. The rules can be changed, paused, or cancelled at any time, giving users flexibility and control.

T-Bills are short-term borrowing instruments issued by the government. They are sold at a discount and redeemed at face value. Since they do not offer interest, the return is the difference between the purchase price and the redemption amount. Since they are backed by the central government, they are considered very low-risk instruments. Hence, they are used to park funds for a few months.

RBI created the retail direct platform so that individual investors can get direct access to government bonds.

Earlier, this space was dominated by banks, institutions, and mutual funds. With features like auto-bidding, the central bank hopes to make the bond market more accessible to a wider set of investors.

As noted in media reports, the move is part of a larger push to remove entry barriers and encourage more retail participation in the government securities market. For those looking for a low-maintenance, safe investment route, this feature may offer a welcome improvement.