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What is Treasury Bills Market and its types?

4 months ago
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by Anjali Yadav
  • What is Treasury Bills Market and its types?
    What is Treasury Bills Market and its types?

What is treasury bills market ? Write its types.

Treasury Bills Market

Treasury bills market have short-term maturity. It is a promissory note or a finance bill issued by the Government. It is highly liquid or its repayment is guaranteed by the Government. The Government promises to pay the specified amount.

These bills are issued only by the RBI on behalf of the Government to meet temporary Government deficit. Discount rate is determined by the RBI.

Types of Treasury Bills:

These are of following two types:

(i) Ordinary or regular; and

(ii) Ad hoc called as ‘ad hocs’.

Above can be discussed as under :

(i) Ordinary or Regular Treasury Bills: These are issued to the public and other financial institutions. They meet the Central Government’s short-term requirements. These are freely marketable.

(ii) Ad hocs: These are always issued in favour of the RBI only. On the basis of periodicity, treasury bills are as under:

  1. 91 days treasury bills;
  2. 182 days treasury bills;
  3. 364 days treasury bills.

Participants: Participants of treasury bills market are as under :

  1. Reserve Bank of India;
  2. State Bank of India;
  3. Commercial banks;
  4. State governments;
  5. State Trading Corporation of India (STC);
  6. Discount and Finance House of India (DFHI);
  7. Financial institutions e.g. UTI, LIC, IDBI, ICICI, IFCI.

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Anjali Yadav

इस वेब साईट में हम College Subjective Notes सामग्री को रोचक रूप में प्रकट करने की कोशिश कर रहे हैं | हमारा लक्ष्य उन छात्रों को प्रतियोगी परीक्षाओं की सभी किताबें उपलब्ध कराना है जो पैसे ना होने की वजह से इन पुस्तकों को खरीद नहीं पाते हैं और इस वजह से वे परीक्षा में असफल हो जाते हैं और अपने सपनों को पूरे नही कर पाते है, हम चाहते है कि वे सभी छात्र हमारे माध्यम से अपने सपनों को पूरा कर सकें। धन्यवाद..

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