Q.What are the features of Treasury Bills ?

Treasury Bills (T-Bills) are short-term, risk-free government money-market instruments issued at a discount and redeemed at face value; the discount is the investor's return.

In the Tamil Nadu HSC Class-12 Commerce course, Treasury Bills are studied as a key money-market instrument. Their features are:

• Issuer — issued by the Reserve Bank of India on behalf of the Government of India to meet short-term funds needs.
• Short maturity — issued for 91 days, 182 days or 364 days.
• Zero-coupon / issued at a discount — they carry no separate interest; they are sold below face value and redeemed at full face value, and the difference is the investor's gain. …