Treasury Bills

(Short term sources of fi finance) nance)

PREPARED PREPARED BY : Manoj Kumar ROLL NO : 20

Introduction y

y

The Government securities securities

comprise dated securities securities issued by the Government of India treasury treasur y bills bills issued by the Government of India. Reserve Bank of India manages and services these securities through its public debt offices located in  various  various places as an agent of the Government.

Types Of Treasury Bills y

Treasury bills (T-bills) offer short-term investment

opportunitie opportunities, s, generally up to one year. year. y

y

y

They

are thus useful in managing short -term liquidity.

 At present, the Government of India issues three types of treasury bills through auctions, namely, 91 -day, 182day and 364 364-day. There

are no treasury bills issued by State Governments.

Amount y

reasury bills are available for a minimum amount of  Treasury Rs.25,000 Rs.25,000 and in multiples of Rs. 25,000.

y

y

Treasury reasury bills

are issued at a discount and are redeemed redeemed at par par. Treasury reasury

bills are also issued issued under the Market Market Stabilization Scheme (MSS).

Benefits Of Investment In Treasury Bills y

No tax deducted at sou source rce

y

Highly liquid money market instrument

y

y y

Better returns especially especial ly in the short term term & its its Transparency  Simplified settlement High degree of tradeability and active active secondary  secondary  market facilitates meeting unplanned fund requirements.