​Reduction in Government Treasury Bill Sales

On 17th May, 2024, the Reserve Bank of India (RBI) decided to reduce the quantum of the government treasury bill sales.

  • The RBI's decision to cut down on T-bill issuance while planning significant buybacks is a dual strategy aimed at freeing up bank liquidity and managing government debt efficiently.

Understanding Treasury Bills (T-bills)

  • Issued by the Indian government, these are short-term debt instruments for its borrowing needs.
  • They are highly liquid and secure investments with 91, 182, and 364-day maturity options.
  • T-bills are zero coupon securities and pay no interest. Instead, they are issued at a discount and redeemed at the face ....
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