What are T-bills?
Treasury bills are actually a class of Central Government Securities. Treasury bills, normally referred to as T-Bills are issued by Government of India against their short term borrowing necessities with maturities ranging between 14 to 364 days. The T-Bill of the following periods are currently issued by Government/Reserve Bank of India in Primary Market: 91-day, 182-day and 364-day T-Bills. All these are issued at a discount-to-face value. For example a Treasury bill of Rs. 100.00 face value issued for Rs. 91.50 gets redeemed at the end of it’s tenure at Rs. 100.00.
