Question

    Which of the following auctions Treasury bills (T-bills) in India?

    A RBI Correct Answer Incorrect Answer
    B Central Government Correct Answer Incorrect Answer
    C State Government Correct Answer Incorrect Answer
    D Both B and C Correct Answer Incorrect Answer
    E Commercial Banks Correct Answer Incorrect Answer

    Solution

    Treasury bills are auctioned by the RBI on behalf of GoI. RBI manages and services these securities through its public debt offices. There are no treasury bills issued by State Governments. 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. Instead, they are issued at a discount and redeemed at the face value at maturity.

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