BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Treasury bills (T-bills ) offer short-term investment opportunities, generally up to one year. They are thus useful in managing short-term liquidity. At present, the Government of India issues four types of treasury bills, namely, 14-day, 91-day, 182-day and 364-day.

Detailed explanation-2: -In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs). G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments.

Detailed explanation-3: -3.3 The Reserve Bank of India conducts auctions usually every Wednesday to issue T-bills of 91day, 182 day and 364 day tenors. Settlement for the T-bills auctioned is made on T+1 day i.e. on the working day following the trade day.

Detailed explanation-4: -The Reserve Bank of India (RBI) also issues such treasury bills under its open market operations (OMO) strategy to regulate its inflation level and spending/borrowing habits of individuals.

Detailed explanation-5: -Adhoc treasury bills are issued in favour of the RBI only.