Q.Write a short note on: Treasury Bill

A Treasury Bill is a short-term (up to 1 year) instrument issued by the RBI on behalf of the Government of India to meet its short-term borrowing needs; it is issued at a discount to face value and redeemed at face value, so it carries no separate interest and is virtually risk-free. ## Treasury Bill A Treasury Bill (T-Bill) is a negotiable money-market instrument through which the Government of India borrows money for the short term. It is issued by the Reserve Bank of India on behalf of the government, normally for periods of 91 days, 182 days or 364 days. T-Bills are issued at a discount, i.e. below their face value, and are redeemed at full face value on maturity; the difference between the issue price and the face value is the gain to the investor in place of interest. Because they are backed by the government, they are highly safe, highly liquid and are mainly bought by banks and financial institutions …