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    Treasury Bills and Dated Securities

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    Katie Murray
    Treasury bills are short-term promissory notes issued by the central and state governments at a discount to raise funds for expenditures and provide investors a safe place to park surplus funds. They are issued through auctions held every two weeks or month and have maturities of 91 days or 364 days. Dated securities are government bonds with maturities over one year that pay fixed, semi-annual coupon interest similar to corporate bonds and are considered risk-free.

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    Treasury Bills and Dated Securities

    Uploaded by

    Katie Murray
    7 views1 page
    Treasury bills are short-term promissory notes issued by the central and state governments at a discount to raise funds for expenditures and provide investors a safe place to park surplus funds. They are issued through auctions held every two weeks or month and have maturities of 91 days or 364 days. Dated securities are government bonds with maturities over one year that pay fixed, semi-annual coupon interest similar to corporate bonds and are considered risk-free.

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    Treasury bills are short-term promissory notes issued by the central and state governments at a discount to raise funds for expenditures and provide investors a safe place to park surplus funds. They are issued through auctions held every two weeks or month and have maturities of 91 days or 364 days. Dated securities are government bonds with maturities over one year that pay fixed, semi-annual coupon interest similar to corporate bonds and are considered risk-free.

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    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    7 views1 page

    Treasury Bills and Dated Securities

    Uploaded by

    Katie Murray
    Treasury bills are short-term promissory notes issued by the central and state governments at a discount to raise funds for expenditures and provide investors a safe place to park surplus funds. They are issued through auctions held every two weeks or month and have maturities of 91 days or 364 days. Dated securities are government bonds with maturities over one year that pay fixed, semi-annual coupon interest similar to corporate bonds and are considered risk-free.

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    Attribution Non-Commercial (BY-NC)
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    TREASURY BILLS AND DATED SECURITIES

    Treasury Bills are the instruments of short term borrowing by the Central/State govt. They are promissory notes issued at discount and for a fixed period. These were first issued in India in 1917. Objectives These are issued to raise funds for meeting expenditure needs and also provide outlet for parking temporary surplus funds by investors. Investors Treasury bills can be purchased by any one (including individuals) except State govt. These are issued by RBI and sold through fortnightly or monthly auctions at varying discount rate depending upon the bids. Denomination Minimum amount of face value Rs.1 lac and in multiples there of. There is no specific amount/limit on the extent to which these can be issued or purchased. Maturity : 91 days and 364 days. Rate of interest Market determined, based on demand for and supply of funds in the money market. Other features These are highly liquid and safe investment giving attractive yield. Approved assets for SLR purposes and DFHI is the market maker in these instruments and provide (daily) two way quotes to assure liquidity. RBI sells treasury bills on auction basis (to bidders quoting above the cut -off price fixed by RBI) every fortnight by calling bids from banks, State Govt. and other specified bodies. DATED SECURITIES These are those instruments which have tenure over one year. The returns on dated securities are based on fixed coupon rates akin to corporate bonds. These are considered risk free. FOR MORE DETAILS AND LATEST TOPICS OF INTEREST TO BANKERS YOU CAN refer to our book "Handbook of Banking Information" OR subscribe to our news-magazine "Banking Events Update".
    For other details relating to your interview or promotion test, you can contact us at 91-172-2665623 or eMail bankingevents_update@yahoo.com

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