NCB G-Sec (Government Securities)

NCB stands for Non-Competitive Bidding. It is a facility where retail investors can bid for Government Securities (G-Secs), Treasury Bills (T-Bills), and State Development Loans (SDLs) without having to quote a specific yield or price. Investors are allotted securities at the weighted average price determined in the competitive auction.

Three main types of sovereign instruments are auctioned weekly:\n• Treasury Bills (T-Bills): Short-term debt issued for 91, 182, or 364 days. They are issued at a discount and redeemed at face value (Zero Coupon).\n• Dated G-Secs: Long-term central government bonds with tenures from 2 to 40 years, paying a fixed coupon interest semi-annually.\n• State Development Loans (SDLs): Long-term bonds issued by state governments to fund state budgets, usually offering a slightly higher yield than central government bonds.

Resident individuals, HUFs, sole proprietorships, trusts, and cooperative banks can participate. Retail investors can bid from a minimum of ₹10,000 up to a maximum of ₹2 Crore (face value) per auction in the NCB segment.

You can open an account on the official RBI Retail Direct portal or apply through your stockbroker via platforms like NSE goBID or BSE Direct. You must have a Demat account to receive the securities if buying through brokers.

No. Interest income (coupon) from G-Secs and SDLs is taxable as per your income tax slab. Capital gains upon sale before maturity are also taxed. T-Bill appreciation is treated as short-term capital gains or business income depending on holding purpose. There is no TDS (Tax Deducted at Source) on government securities.