Treasury Bills

(Short term sources of finance)

PREPARED BY : Manoj Kumar

ROLL NO : 20
Introduction
The Government securities comprise dated securities
issued by the Government of India treasury bills
issued by the Government of India.

Reserve Bank of India manages and services these

securities through its public debt offices located in
various places as an agent of the Government.
Types Of Treasury Bills
Treasury bills (T-bills) offer short-term investment
opportunities, generally up to one year.

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, 182-
day and 364-day.

There are no treasury bills issued by State Governments.

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

Treasury bills are issued at a discount and are

redeemed at par.

Treasury bills are also issued under the Market

Stabilization Scheme (MSS).
Benefits Of Investment In Treasury Bills
No tax deducted at source

Highly liquid money market instrument

Better returns especially in the short term & its

Transparency

Simplified settlement
High degree of tradeability and active secondary market
facilitates meeting unplanned fund requirements.
THANK YOU