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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%.
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