Treasury Bills ( T-Bills ) are government debt instrument issued with maturities ranging from 3 months to one year . T-Bills are known as low-risk financial instrument , i.e., they are easy to operate without causing any capital loss to their holders. A T-Bills usually sold at discount , i.e. at lower price than its nominal value .

Upon maturity , the government is committed to pay the nominal value of those T-Bills . They are considered one of the monetary policy instruments for domestic liquidity management .