What is a Treasury Bill?

1.	What is a Treasury Bill?
Answer» A Treasury Bill is an instrument of short term borrowing by the Government of India, Maturing in less than one year. They are also known as Zero-Coupon Bonds issued by the RBI on behalf of the Central Government to meet its short term requirement of funds. Treasury Bills are issued in the form of a promissory note. They are highly liquid and have assured yield and negligible risk of default. They are issued at a price that is lower than their face value and repaid at par. Treasury bills are available for a minimum amount of Rs 25,000.

Answer»

A Treasury Bill is an instrument of short term borrowing by the Government of India, Maturing in less than one year. They are also known as Zero-Coupon Bonds issued by the RBI on behalf of the Central Government to meet its short term requirement of funds. Treasury Bills are issued in the form of a promissory note.

They are highly liquid and have assured yield and negligible risk of default. They are issued at a price that is lower than their face value and repaid at par. Treasury bills are available for a minimum amount of Rs 25,000.

Discussion

No Comment Found

Related InterviewSolutions

Meaning of Capital Market.
What is Depository Service?
What is Depository Service? Explain the participants of this service.
“A financial market is for the creation and exchange of financial assets.” Explain any two of its functions.
What is a demat account? How did its need arise?
State any one component of capital market.
What is DEMAT account?
What is dematerialization of securities?
What is the biggest advantage of online trading on a stock exchange?
Whose registration does SEBI cancel?