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The safest investment in India - backed by the Government
Government Securities (G-Secs) are debt instruments issued by the Reserve Bank of India (RBI) on behalf of the Government of India to finance its fiscal deficit. They carry a sovereign guarantee, making them the safest investment option in India.
G-Secs come in three main types: Treasury Bills (T-Bills) for short-term (91/182/364 days), dated Government Securities for medium to long-term (5-40 years), and State Development Loans (SDLs) issued by state governments.
Since 2021, retail investors can directly invest in G-Secs through the RBI Retail Direct portal without any intermediary fees, making government bonds more accessible than ever.
Short-term money market instruments issued at a discount and redeemed at face value.
Long-term bonds with fixed coupon payments and maturity periods.
Bonds issued by state governments with slightly higher yields than central G-Secs.
Backed by the Government of India with zero default risk. The safest investment option available in the country.
Currently offering 7-7.5% returns, higher than most bank FDs while being significantly safer.
Active secondary market on NDS-OM and stock exchanges. Can be sold anytime during market hours.
Semi-annual coupon payments provide steady income stream. T-Bills pay at maturity.
Start investing with just ₹10,000 (1 unit). Accessible for retail investors through RBI Retail Direct.
RBI Retail Direct charges zero fees for buying, holding, or selling G-Secs. No brokerage or custody charges.
Open a free account at rbiretaildirect.org.in. Link your bank and Aadhaar. Participate in primary auctions or buy from secondary market.
Buy G-Secs through your existing stock broker on NSE/BSE. Bonds held in your demat account.
Invest in gilt funds or constant maturity funds for professional management and diversification.
| Aspect | Details |
|---|---|
Tax Rate | As per income tax slab |
TDS | No TDS on G-Secs |
Reporting | Report in ITR under 'Income from Other Sources' |
| Aspect | Details |
|---|---|
Holding Period for LTCG | > 12 months (Listed) |
LTCG Tax Rate | 12.5% (Budget 2024) |
STCG Tax Rate | As per income tax slab |
Indexation | Not available (from FY 2024-25) |
Bond prices fall when interest rates rise. Longer duration bonds are more sensitive to rate changes.
When coupons are received, prevailing rates may be lower, reducing reinvestment returns.
Fixed coupon payments may lose purchasing power if inflation rises above the yield.
Common questions about investing in Government Securities
Tools and guides to help you make better investment decisions