{"id":14353,"date":"2023-05-14T01:37:32","date_gmt":"2023-05-13T20:07:32","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=14353"},"modified":"2025-05-27T11:18:53","modified_gmt":"2025-05-27T05:48:53","slug":"treasury-bills","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/treasury-bills\/","title":{"rendered":"Treasury Bills"},"content":{"rendered":"<h2>Treasury Bills Latest News<\/h2>\n<p>India recently extended financial support to the Maldives by renewing a USD 50 million Treasury Bill for another year through the State Bank of India (SBI).<\/p>\n<h2>About Treasury Bills<\/h2>\n<ul>\n<li>A T-Bill is a\u00a0<strong>short-term debt instrument issued by the Indian government through<\/strong>\u00a0the Reserve Bank of India (<strong>RBI<\/strong>).\u00a0<\/li>\n<li><strong>Purpose:\u00a0<\/strong>\n<ul>\n<li>The primary objective of a T-Bill is to\u00a0<strong>meet the short-term financial requirements\u00a0<\/strong>of the central government.<\/li>\n<li>RBI also issues such treasury bills under its\u00a0<strong>open market operations (OMO)\u00a0<\/strong>strategy\u00a0<strong>to regulate its inflation level<\/strong>\u00a0and spending\/borrowing habits of individuals.\u00a0<\/li>\n<li>For investors, they present one of the\u00a0<strong>safest investments\u00a0<\/strong>with the\u00a0<strong>highest liquidity\u00a0<\/strong>among government securities.\u00a0<\/li>\n<\/ul>\n<\/li>\n<li><strong>Features:\u00a0<\/strong>\n<ul>\n<li>T-Bills are\u00a0<strong>zero coupon securities<\/strong>, meaning they\u00a0<strong>don\u2019t pay interest.\u00a0<\/strong><\/li>\n<li>Instead, they are\u00a0<strong>issued at a discount\u00a0<\/strong>and\u00a0<strong>redeemed at the face valueat maturity.<\/strong>\u00a0For example, a 91 day Treasury bill of \u20b9100\/- (face value) may be issued at say \u20b9 98.<\/li>\n<li>The\u00a0<strong>return<\/strong>\u00a0to the investors\u00a0<strong>is the difference between<\/strong>\u00a0the\u00a0<strong>maturity value or the face value and the issue price.<\/strong><\/li>\n<li><strong>Tenure:\u00a0<\/strong>T-Bills are issued in India with tenures of\u00a0<strong>91 days, 182 days, 364 days.\u00a0<\/strong><\/li>\n<li><strong>Minimum Investment<\/strong>:\u00a0<strong>\u20b925000 or multiples of this\u00a0<\/strong>amount.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Issue Process:<\/strong>\n<ul>\n<li>T-bills are issued through an<strong>\u00a0auction conducted by the RBI<\/strong>\u00a0at regular intervals.\u00a0<\/li>\n<li>The auctions are<strong>\u00a0held\u00a0<\/strong>at\u00a0<strong>RBI\u2019s electronic platform called E-Kuber.<\/strong><\/li>\n<li><strong>Who can buy T-Bills?\u00a0<\/strong><\/li>\n<li>T-bills can be purchased by<strong>\u00a0any entity registered in India<\/strong>, such as\u00a0<strong>banks, financial institutions, primary dealers<\/strong>, corporate bodies, institutions, mutual funds,\u00a0<strong>state governments, trusts\u00a0<\/strong>and even\u00a0<strong>individuals in both primary as well as secondary markets.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Treasury Bills FAQs<\/h2>\n<p><strong>Q1:<\/strong>\u00a0What is the treasury bill?<\/p>\n<p><strong>Ans:<\/strong>\u00a0A T-Bill is a short-term debt instrument issued by the Indian government through the RBI.<\/p>\n<p><strong>Q2:<\/strong>\u00a0Is T Bill a good investment?<\/p>\n<p><strong>Ans:<\/strong>\u00a0For investors, T-Bills present one of the safest investments with the highest liquidity among government securities.\u00a0<\/p>\n<p><strong>Q3:<\/strong>\u00a0What is the primary purpose of issuing Treasury Bills (T-Bills)?<\/p>\n<p><strong>Ans:<\/strong>\u00a0To meet short-term financial requirements of the government.<\/p>\n<p><strong>Source<\/strong>:\u00a0<a href=\"https:\/\/timesofindia.indiatimes.com\/india\/india-extends-financial-support-to-maldives-via-rollover-of-50-million-treasury-bill\/articleshow\/121104117.cms\" target=\"_blank\" rel=\"nofollow noopener\">TOI<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A T-Bill is a short-term debt instrument issued by the Indian government through the Reserve Bank of India (RBI).<\/p>\n","protected":false},"author":5,"featured_media":47309,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[21,417,23],"class_list":{"0":"post-14353","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-prelims-pointers","9":"tag-treasury-bills","10":"tag-upsc-prelims-current-affairs","11":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/14353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=14353"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/14353\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/47309"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=14353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=14353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=14353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}