{"id":21931,"date":"2024-03-28T03:11:56","date_gmt":"2024-03-27T21:41:56","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=21931"},"modified":"2025-04-06T16:18:21","modified_gmt":"2025-04-06T10:48:21","slug":"treasury-bill","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/treasury-bill\/","title":{"rendered":"What are Treasury Bills?"},"content":{"rendered":"<h2>About Treasury Bills<\/h2>\n<ul>\n<li>Treasury bills or T-bills are\u00a0money market instruments.<\/li>\n<li>These are short term debt instruments issued by the Government of India.<\/li>\n<li>Maturity period: At present, treasury bills are issued in three maturities \u2014\u00a091-day, 182-day and 364-day.<\/li>\n<li>These are zero coupon securities and\u00a0pay no interest. Instead, they are issued at a discount and redeemed at the face value at maturity.<\/li>\n<li>Who can buy?\n<ul>\n<li>Individuals, trusts, institutions and banks can purchase T-Bills. But they are usually held by financial institutions.<\/li>\n<li>They have a very important role in the financial market beyond investment instruments.<\/li>\n<li>Banks give treasury bills to the RBI to get\u00a0money under repo. Similarly, they can also keep it to fulfil their\u00a0Statutory Liquid Ratio (SLR) requirements.<\/li>\n<\/ul>\n<\/li>\n<li>How do T-bills work?\n<ul>\n<li>Treasury bills are issued at a discount to original value and the buyer gets the original value upon maturity.<\/li>\n<li>For example, a Rs 100 treasury bill can be availed of at Rs 95, but the buyer is paid Rs 100 on the maturity date.<\/li>\n<li>The return on treasury bill depends on liquidity position in the economy. When there is a liquidity crisis, the returns are higher, and vice versa.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1) What is the money market?<\/h3>\n<p>It is defined as dealing in debt of less than one year. It is primarily used by governments and corporations to keep their cash flow steady, and for investors to make a modest profit.\u00a0<\/p>\n<p><strong>Source:<\/strong> <a href=\"https:\/\/pib.gov.in\/PressReleasePage.aspx?PRID=2016488\" target=\"_blank\" rel=\"nofollow noopener\"><u>Calendar for Auction of Government of India Treasury Bills<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Treasury Bills are short term debt instruments issued by the Government of India.<\/p>\n","protected":false},"author":5,"featured_media":21932,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-21931","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/21931","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=21931"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/21931\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/21932"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=21931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=21931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=21931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}