What Are Treasury Bonds in India 2026
Quick answer: Treasury bonds are long-term debt securities issued by the Government of India and auctioned by the Reserve Bank of India (RBI). They pay a fixed coupon every six months and return the face value on maturity. For Indian investors, these bonds are also known as G-secs and trade on NSE and BSE.
Frequently asked questions
Are treasury bonds risk-free for retail investors?
There is no default risk because the Government of India guarantees repayment. But market prices can move with RBI policy. If you hold to maturity, you receive the face value plus coupons.
Can I buy treasury bonds on NSE and BSE?
Yes. Both exchanges have a retail government securities segment. You need a demat account and a trading account with a SEBI-registered broker.
How is treasury bond interest taxed?
the coupon income is added to your taxable income and taxed as per your slab. Unlike ELSS or PPF, treasury bonds do not offer a Section 80C deduction.
Are treasury bonds better than SIPs in mutual funds?
They are different. SIPs can produce higher long-term returns; a ₹10,000 monthly SIP at 12% CAGR becomes ~₹24.6 lakh in 10 years. Treasury bonds provide certainty, not high growth.
What role does the RBI play in 2026?
the RBI sets the repo rate and conducts treasury bond auctions. With the repo rate at 5.50% in 2026, bond yields reflect market expectations about future policy moves and Budget 2026 changes.
Sources and authority
This guide is part of the MoneyApp financial education ecosystem. For tax questions in Brazil, see Agente Tributário.
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MoneyApp · Financial education in India · Consult SEBI (Securities and Exchange Board of India) for official guidance.