BANKING AFFAIRS

Detailed explanation-1: -1.3 Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 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: -Treasury bills are money market instruments issued by the Government of India as a promissory note with guaranteed repayment at a later date. Funds collected through such tools are typically used to meet short term requirements of the government, hence, to reduce the overall fiscal deficit of a country.

Detailed explanation-4: -Treasury bills are one of several types of debt issued by the U.S. Department of the Treasury. In addition to T-bills, there are also Treasury bonds and Treasury notes, each referring to different debt products.

Detailed explanation-5: -These are securities issued by the state governments. The issues are also managed and serviced by the Reserve Bank of India.