BANKING AFFAIRS

Detailed explanation-1: -The interest rate offered on the government bond is known as the coupon rate.

Detailed explanation-2: -1.2 A Government Security (G-Sec) is a tradeable instrument issued by the Central Government or the State Governments. It acknowledges the Government’s debt obligation.

Detailed explanation-3: -Dated G-Secs These instruments come with either a fixed or a floating interest rate, also known as the coupon rate. The coupon rate is applied on the face value of your investment and is paid to you on a half-yearly basis as interest. The government issues these funds to finance a fiscal deficit.

Detailed explanation-4: -Government security (G-Sec) means a security created and issued by the Government for the purpose of raising a public loan or any other purpose as notified by the Government in the Official Gazette and having one of the following forms. a bond held in a Bond Ledger Account (BLA).

Detailed explanation-5: -The Government of India issues securities to raise capital for development projects. These securities are called government securities or G-secs, issued by RBI. The RBI manages the public debt of the Indian government. G-secs are issued in three forms: treasury bills, dated securities and bonds.