What Happened
On 25 March 2026, the Reserve Bank of India held its regular weekly auction for Government of India Treasury Bills across three tenors: 91 day, 182 day, and 364 day. The RBI put up a total notified amount of Rs 35,000 crore across the three categories. However, in an unusual move, the RBI chose not to accept any competitive or non competitive bids in any of the three tenors.
This information comes from RBI Press Release 2025-2026/2324, signed by Ajit Prasad, Deputy General Manager (Communications).
Auction Details at a Glance
Notified Amounts
| Tenor | Notified Amount (Rs crore) | |---|---| | 91 Day | 15,000 | | 182 Day | 12,000 | | 364 Day | 8,000 | | Total | 35,000 |
Competitive Bids Received
| Tenor | Number of Bids | Amount (Rs crore) | |---|---|---| | 91 Day | 79 | 21,698.35 | | 182 Day | 104 | 28,775.90 | | 364 Day | 90 | 15,675.10 |
Non Competitive Bids Received
| Tenor | Number of Bids | Amount (Rs crore) | |---|---|---| | 91 Day | 4 | 3,023.89 | | 182 Day | 3 | 7.66 | | 364 Day | 3 | 70.08 |
Bids Accepted
The RBI did not accept any competitive bids or non competitive bids across all three tenors. No cut off price, no weighted average yield, and no partial allotment percentages were announced.
Why This Matters
When the RBI receives bids that exceed the notified amount (which happened here for all three tenors) but still rejects every single bid, it typically means the yields demanded by the market were higher than what the RBI considered acceptable. This is the central bank's way of signaling that it does not want short term government borrowing costs to rise beyond a certain level.
For the 182 day tenor, competitive bids of Rs 28,775.90 crore came in against a notified amount of just Rs 12,000 crore, showing a bid to cover ratio of nearly 2.4 times. Even with this strong demand, the RBI walked away from the auction entirely.
What This Means for NRI Investors
Money Market and Fixed Income Impact
Treasury Bill yields serve as a benchmark for short term interest rates across the Indian financial system. When the RBI refuses to allot T Bills at yields the market is demanding, it sends a clear signal about its stance on the short end of the yield curve. NRIs who invest in Indian debt mutual funds, liquid funds, or money market funds should note that fund managers will need to recalibrate their short term yield expectations.
Equity Market Implications
A devolvement or full rejection of a T Bill auction can create temporary tightness in the money market. Banks and primary dealers who expected to receive these securities will need to manage their liquidity positions differently. For NRI equity investors, this kind of RBI action often hints at the central bank's broader monetary policy direction. If the RBI is resisting higher short term rates, it could be supportive for equity valuations in the near term.
NRE and NRO Fixed Deposit Rates
T Bill yields influence the rates banks offer on short term deposits, including NRE and NRO fixed deposits. If the RBI continues to push back against higher yields, NRIs may not see significant upward movement in their deposit rates in the immediate future.
How NRIs Can Invest in Treasury Bills
NRIs can participate in the primary auction of Government of India Treasury Bills through their NRO or NRE accounts, subject to conditions laid down under FEMA regulations. Investment in government securities by NRIs is governed by the RBI's directions on government securities. NRIs interested in T Bills can also gain exposure through debt mutual funds that hold these instruments.
Key Takeaway
The complete rejection of bids across all three tenors in a single auction is not a routine event. NRIs should watch subsequent auctions and RBI communications closely to understand whether this reflects a temporary disagreement on pricing or a more sustained shift in the RBI's approach to managing short term yields. Check the RBI website for updated auction results and any follow up circulars.