The 182-day T-bill is making a comeback after a hiatus of nearly seven years. First introduced in 1986, the 182-day bill was discontinued in April 1992. The re-introduction of the 182-day bill is seen enabling the expansion of the T-bills market. For corporates, it presents another avenue for short-term investments, more so given the current "shut period" for the US-64.

Speaking to the The Financial Express, former RBI deputy governor, SS Tarapore, who had earlier expressed his reservations on the re-introduction of the 182-day T-Bill said, "The 182-day T-bill auction will create a primary yield curve for that maturity. The Reserve Bank has been fair by restricting the notified amount to Rs 100crore. This will not crowd out the secondary market for 364-day T-bills with a like residual maturity".

A long standing demand from the banking sector, the re-introduction of 182-day T-bill on a fortnightly basis was proposed in the credit-policy for the first half of 1998-99, but its re-introduction was delayed until now.

The Reserve Bank had on last Friday announced a calender for the auction of 182-day T-bills, the notified amount for which has been pegged at Rs 100 crore. The auction of the 182-day T-bills will be held fortnightly on alternate Wednesdays preceding the non-reporting Fridays and payments will be made on the next day.

In its release last week, the Reserve bank said that "in order to promote a six-month benchmark rate and provide additional instrument for asset liability management, it has been decided to issue 182-day T-bills every fortnight in addition to other maturities,". "The central bank has, however, retained the right to vary the amount and timing if circumstances warrantwithout assigning any reasons" it added.