BANKING AFFAIRS

Detailed explanation-1: -Treasury bills, also called T-bills, are short term government securities with a maturity period of less than one year issued by the central government of India. Treasury bills are short term instruments and issued three different types: 1) 91 days. 2) 182 days. 3) 364 days.

Detailed explanation-2: -Such securities are short term (usually called treasury bills, with original maturities of less than one year) or long term (usually called Government bonds or dated securities with original maturity of one year or more).

Detailed explanation-3: -Treasury Bills are short-term securities with five term options, from 4 weeks up to 52 weeks. Bills are sold at face value or at a discount from the face value.

Detailed explanation-4: -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-5: -Types of Treasury Bills Treasury Bills are basically instruments for short term (maturities less than one year) borrowing by the Central Government. Treasury Bills were first issued in India in 1917. At present, the active T-Bills are 91-days T-Bills, 182-day T-Bills and 364-days T-Bills.