CURRENT 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: -Treasury bills are usually sold in denominations of $1, 000. However, some can reach a maximum denomination of $5 million in non-competitive bids. These securities are widely regarded as low-risk and secure investments.

Detailed explanation-3: -Those that mature in less than 91 days are called Cash Management Bills (e.g. 35-day, 42-day). T-Bills do not bear interest but are rather issued and sold at a discount from face value (they can’t be traded at a premium) and are redeemed at maturity for the full face value of the instrument.

Detailed explanation-4: -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. Several financial instruments pay interest to you on your investment; treasury bills do not pay interest because they are also called zero-coupon securities.