State Govts Get Non-Competitive Bidding for 182-Day T-Bills
No longer current — replaced by Master Circular on the subject (updated)
Source: Reserve Bank of India · RBI/2004-05/407 · issued 30 Mar 2005 · ~2 min read
Quick answerRBI extends non-competitive bidding facility to 182-Day Treasury Bills for State Governments from FY 2005-06. First auction on April 6, 2005, with fortnightly auctions thereafter. These T-Bills also qualify as eligible security for Special WMA.
What changed
RBI reintroduced 182-Day Treasury Bills from FY 2005-06, with the first auction on April 6, 2005, and subsequent fortnightly auctions. State Governments, previously allowed non-competitive bidding only for 91-day and 364-day T-Bills, can now also bid non-competitively for 182-Day T-Bills. Investment in these T-Bills will count as eligible security for Special WMA facility.
What it means for you
State Governments gain a new avenue for short-term investment with the 182-Day T-Bill, enhancing their liquidity management options. For banks, this may increase demand for T-Bills in auctions, potentially affecting yields. The inclusion as eligible security for Special WMA could ease state government cash flow pressures, indirectly impacting bank lending to states.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update internal systems to accommodate State Government non-competitive bids for 182-Day T-Bills from April 6, 2005.
Inform treasury and government banking teams about the new fortnightly auction schedule for 182-Day T-Bills.
Review state government WMA limits and collateral eligibility to include 182-Day T-Bills as eligible security.
Monitor auction participation by state governments to assess impact on T-Bill yields and liquidity.
Who it affects
State Government treasuries and finance departments, Banks handling state government accounts and WMA facilities, Primary Dealers and other T-Bill auction participants, RBI's public debt management and monetary operations teams
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 21:05 IST
Superseded by — Master Circular on the subject (updated)
Status change: superseded05 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
When does the 182-Day T-Bill non-competitive bidding start for state governments?
The facility starts from FY 2005-06, with the first auction on April 6, 2005. Subsequent auctions will be held fortnightly on Wednesdays before non-Reporting Fridays, with payment on non-Reporting Fridays.
How does this affect state government borrowing from RBI?
Investments in 182-Day T-Bills will be counted as eligible security for availing Special WMA facility, potentially increasing state governments' access to short-term credit from RBI.
Which other T-Bill maturities already have non-competitive bidding for state governments?
State Governments were already permitted non-competitive bidding for 91-day and 364-day Treasury Bills before this extension.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Superseded byMaster Circular on the subject (updated)
📜 Read the original circular — full text as issued by RBI
RBI/2004-05/407
IDMD. No 11 /08.12.00/2004-05
March 30, 2005
To,
Finance Secretaries of the State Government
Dear Sirs,
Extension of the Scheme of Non-Competitive
Bidding Facility to 182-Day Treasury Bills
The Reserve Bank in consultation with the Government
of India has decided to re-introduce 182-Day Treasury Bills from the fiscal
year 2005-06. The first auction of 182-Day Treasury Bills will be conducted
on April 6, 2005 and subsequent auctions on a fortnightly basis on Wednesdays
preceding the non-Reporting Fridays with payment on non-Reporting Fridays. In
this connection, we enclose a copy of the Press Release of the calendar for
auctions of Government of India Treasury Bills for the period from April 1,
2005 to March 31, 2006, for your information.
2. Presently, State Governments are permitted
to bid on non-competitive basis for Treasury Bills of maturities of 91 day and
364 day. It has since been decided to allow State Governments to bid for 182–Day
Treasury Bills also on non-competitive basis. Investment by State Governments
in the above Treasury Bills will also be reckoned as eligible security for the
purpose of availing of Special WMA facility. The contents of this letter will
come into effect forthwith.
Please acknowledge receipt.
Yours faithfully
(R. Sebastian)
General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2004-05/407 · issued 30 Mar 2005. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2169&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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