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Government securities (g-secs)

Invest in India's safest government-backed bonds

  • Faster retail direct onboarding
  • Invest using the #1-rated mobile app
  • Direct interest credit facilitated by the RBI
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What are government securities
(g-secs)?

Government Securities, known as g-secs, are debt instruments issued by the Government of India and state governments to raise funds for their borrowing needs. The Reserve Bank of India manages issuance and auctions of government securities. G-secs include treasury bills, dated bonds, state development loans and STRIPS, each with a different tenure.

Every category carries sovereign backing, which places default risk near zero. Investors lend money to the government and receive interest at fixed or floating rates, along with principal repayment at maturity. G-secs trade actively in the primary and secondary markets and price other fixed income instruments in India.

Read more

Why invest in government securities?

Sovereign guarantee keeps credit risk close to zero

Retail investors can access g-secs directly through RBI Retail Direct portal or IDFC FIRST Bank's mobile banking app

Wide range of tenures from 91 days to 50 years suits different goals

Suitable for portfolio diversification alongside equity and corporate debt

Regular interest income through fixed or floating coupons

No upper limit on investment amount for eligible investors

High liquidity in the secondary market for most dated securities

A practical way to invest in govt bonds for the first time without complex paperwork

Types of government securities
in India

The Government of India issues securities of varying tenure and structure to meet short-term and long-term borrowing needs. These instruments differ in maturity, coupon payment and issuing authority, giving investors options based on their time horizon and cash flow needs.

Treasury bills

  • T-bills

T-bills are short-term instruments with maturities of 91, 182 or 364 days. They carry no coupon and are issued at a discount to face value. The return equals the difference between the issue price and the redemption value paid at maturity. RBI conducts weekly auctions for these instruments.

Government bonds

  • Dated g-secs

A dated govt bond carries a fixed or floating coupon paid semi-annually, with maturities ranging from 3 to 50 years. The 10-year G-Sec serves as the benchmark for the broader bond market. Principal is repaid in full at maturity, and the coupon rate is fixed at issuance.

State development loans

  • SDLs / State Government Securities

SDLs are dated securities issued by state governments to fund their fiscal deficits. The structure and auction process mirror those of central government bonds, though yields are usually a notch higher due to state-level credit spreads. RBI manages issuance on behalf of states.

STRIPS

  • Separate Trading of Registered Interest and Principal Securities

STRIPS separate a dated g-sec's coupon and principal payments into individual zero-coupon instruments. Each piece can be traded on its own. This suits investors who want a fixed cash flow on a known future date without reinvestment risk.

Government securities interest rates

Rates move with RBI policy, inflation and auction demand. Figures below cover the benchmark tenures RBI reports most often; each category also trades in other tenures, since dated bonds range from 3 to 50 years and SDLs vary by state and issue.

Instrument
Tenure
Indicative Yield
Treasury bill
91 days
~5.25%
Treasury bill
182 days
~5.47%
Treasury bill
364 days
~5.66%
Government bond (dated g-sec)
10 years
~6.75%
State development loan
Varies by state and tenure
Trades at a spread over comparable-maturity G-Secs
STRIPS
Varies by underlying bond
Linked to the yield curve

*as on 5/8/2026

Govt bonds interest rates change with each auction cycle and RBI policy review. Investors should check live rates before placing an order.

Key features of investing in g-secs with IDFC FIRST bank

Multiple investment channels

G-secs can be bought through IDFC FIRST Bank's mobile banking app

Simple eligibility

The process needs PAN, bank account and KYC, plus a demat account for the app route

Direct credit

Interest and maturity proceed credit directly to the linked bank account on the due date

Unified portfolio

Account holders can track G-Sec holdings and govt bonds interest rates from the same login

Freely Repatriable

No fee applies for opening a Retail Direct Gilt account, & the demat account has no opening charges either

Get started with government securities

Who should invest in government securities?

Who can apply?

Conservative investors who prioritise capital safety over higher returns

Retirees seeking a steady interest income stream

Investors building a long-term portfolio with a fixed maturity date in mind

Those who want to diversify away from equity and corporate debt exposure

NRIs looking for rupee-denominated sovereign debt exposure in India

First-time debt market investors who want to invest in govt bonds with low entry amounts

How to invest in government securities with IDFC FIRST bank?

Step 1

Log in to IDFC FIRST Bank's internet banking or mobile banking app

Step 2

Go to the
Investments section

Step 3

Select
Government Securities

Step 4

Choose the G-Sec, T-Bill, SDL or STRIPS you wish to invest in and enter the desired amount

Step 5

Review the payable amount and confirm to complete the purchase

Alternatively, investors can open a Retail Direct Gilt (RDG) account on the RBI Retail Direct portal using their PAN, email and mobile number, complete KYC and link their IDFC FIRST Bank account for payment and settlement.

Why choose IDFC FIRST bank for government securities investment?

Faster onboarding

An existing IDFC FIRST Bank account speeds up linking with the mobile banking application

Seamless payments

Our mobile banking app allow direct payment for app purchases, auction bids and secondary trades

Automatic credits

Interest and maturity get credited directly to the linked bank account

Unified portfolio

Digital access allows investors to track g-sec holdings alongside other bank products

FAQs

A government security is a debt instrument issued by the central or state government to borrow funds, carrying a sovereign guarantee on interest and principal repayment.

At this bracket, IDFC FIRST Select is your card.

  • 1 free domestic airport lounge visit every quarter, at zero annual fee.
  • Forex markup drops to 1.99% on international spends.
  • Save more on every purchase or trip abroad.
  • Buy 1 Get 1 on movie tickets, twice a month.

The IDFC FIRST Wealth gives you premium benefits at zero annual fee, something no other bank offers at this level.

  • Airport lounge access - 1 domestic and 1 international trip covered.
  • Complimentary golf at select courses across India.
  • 1.5% forex markup - among the lowest for a free card.
  • Buy 1 Get 1 on movie tickets twice a month.

The IDFC FIRST WOW! Card is built for you.

  • No income proof or credit score needed.
  • Available against a fixed deposit of ₹20,000.
  • 100% of your FD amount becomes your credit limit, usable for daily spends, while your FD keeps earning interest.
  • 0% forex markup and 4X rewards on eligible spends

The IDFC FIRST WOW! Card is built for you.

  • No income proof or credit score needed.
  • Available against a fixed deposit of ₹20,000.
  • 100% of your FD amount becomes your credit limit, usable for daily spends, while your FD keeps earning interest.
  • 0% forex markup and 4X rewards on eligible spends

The IDFC FIRST WOW! Card is built for you.

  • No income proof or credit score needed.
  • Available against a fixed deposit of ₹20,000.
  • 100% of your FD amount becomes your credit limit, usable for daily spends, while your FD keeps earning interest.
  • 0% forex markup and 4X rewards on eligible spends

The IDFC FIRST WOW! Card is built for you.

  • No income proof or credit score needed.
  • Available against a fixed deposit of ₹20,000.
  • 100% of your FD amount becomes your credit limit, usable for daily spends, while your FD keeps earning interest.
  • 0% forex markup and 4X rewards on eligible spends

The IDFC FIRST WOW! Card is built for you.

  • No income proof or credit score needed.
  • Available against a fixed deposit of ₹20,000.
  • 100% of your FD amount becomes your credit limit, usable for daily spends, while your FD keeps earning interest.
  • 0% forex markup and 4X rewards on eligible spends

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