Treasury Bill

Treasury Bill: India recently rolled over a $50 million treasury bill for the Maldives, continuing a Government-to-Government arrangement established in 2019, where India provides annual emergency financial aid through treasury bill rollovers.

• About Treasury Bills: T-Bills are money market instruments.

o First issued in India in 1917.

o  Issued via auctions conducted by the Reserve Bank of India (RBI) at regular intervals.

o These are short term debt instruments issued by the Government of India.

o Tenure: These are presently issued in three tenors, namely, 91 day, 182 day and 364 day.

o These are zero coupon securities and pay no interest. Instead, they are issued at a discount and redeemed at the face value at maturity.