A T-Bill auction is the process by which the Reserve Bank of India (RBI) issues Treasury Bills — short-term government securities with maturities of 91 days, 182 days, or 364 days — to eligible participants including banks, primary dealers, and institutional investors. T-Bill auctions in India are conducted on a weekly basis by the RBI using the uniform price auction method for 91-day bills and the multiple price auction method for 182-day and 364-day bills. Participants submit competitive bids specifying the yield they require, and the RBI sets a cut-off yield — all accepted bidders receive T-Bills at the cut-off price. Non-competitive bids (submitted by small investors through the RBI Retail Direct platform) are allotted at the weighted average yield of accepted competitive bids. T-Bill auction results are closely watched as a real-time indicator of short-term money market conditions and expectations for RBI monetary policy.
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