A government security is a tradable instrument issued by the central or state government.
It acknowledges the government’s debt obligation. G-secs are issued by the RBI on behalf of the central or state governments.
When these securities are for a short term i.e having a maturity period of less than one year, then they are called Treasury bills or T-bills.
Securities having a long-term maturity period i.e more than a year, they are called government bonds or dated securities.
The central government issues both T-bills as well as dated securities whereas state governments only issue dated securities which are called state development loans.
