Context: The National Stock Exchange (NSE) has launched an app and web-based platform, ‘NSE goBID’, for retail investors to buy government securities.

About ‘NSE goBID’:

The app would allow investors to invest in treasury bills (T-Bills) of 91 days, 182 days and 364 days and various government bonds from one year to almost 40 years. The retail investors would be able to make payment directly from their bank accounts using Unified Payments Interface (UPI) and Internet banking. While investment could be done almost every week after a one-time registration, the app would be available to all investors registered with NSE’s trading members.

Significance:

The launch assumes significance as government securities are among the safer investment options available to retail investors as such securities are credit risk free instruments while providing portfolio diversification with longer investment durations.

What we need to know about Treasury bills?

• T-bills are short term securities issued on behalf of the government by the RBI and are used in managing short term liquidity needs of the government.
• 91-day T-bills are auctioned every week on Wednesday and 182-day and 364-day T-bills are auctioned every alternate week on Wednesdays.
• Treasury bills are issued at a discount and are redeemed at par.