ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Treasury bills are short-term securities issued by RBI on behalf of Government of India, for maturities of 91, 182 and 364 days. These Treasury bills are issued at a discount and are redeemable at par on maturity. They can be issued during the periodic auctions and are tradable in the secondary market.

Detailed explanation-2: -The Reserve Bank of India announces the issue details of T-bills through a press release on its website every week. 3.4 Like T-bills, Cash Management Bills (CMBs) are also issued at a discount and redeemed at face value on maturity.

Detailed explanation-3: -Treasury bills are one of the most popular short-term government schemes issued by the RBI and are backed by the central government. Such tools act as a liability to the Indian government as they need to be repaid within the stipulated date.

Detailed explanation-4: -The Reserve Bank manages public debt on behalf of the Central and the State Governments. It involves issue of new rupee loans, payment of interest and repayment of these loans and other operational matters such as debt certificates and their registration.

Detailed explanation-5: -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. Treasury bills are zero coupon securities and pay no interest.