Treasury bills are money market instruments offered to finance short term debt obligation of the Government of India. Three types of T bills are issued, namely 91-day, 182-day and 364-day Treasury Bills, through a competitive bidding process of auction. Only a few institutions like state governments and Central Bank of Nepal are allowed to participate in the T-Bills auctions on a non-competitive basis whereby full amount of security is allocated at the yield determined at the auction.

The table as under describes the types of T-Bills, day of auction and payments, and the notified amount of auction.

The instrument is quoted at a discount price to the par value of Rs 100. It is quoted in the secondary market on a yield basis with the minimum tradeable amount of Rs. 25000. The instrument is redeemed at par value with the difference between the issue price and par value being the return on the instrument.