Q. With reference to Treasury Bills (T-Bills) in India, consider the following statements:
1.T-Bills are zero-coupon securities issued by the Government of India through the RBI to meet short-term financial requirements.
2.T-Bills pay periodic interest to investors during their tenure.
3.T-Bills are issued in tenures of 91 days, 182 days, and 364 days, and can be purchased by individuals as well as institutional investors.
4.The auctions for T-Bills are conducted on the RBI’s electronic platform called E-Kuber.
How many of the above statements are correct?
Answer: C
Notes:
Explanation:
- Statement 1 is correct: T-Bills are zero-coupon securities issued by the government through RBI to meet short-term financing needs.
- Statement 2 is incorrect: T-Bills do not pay periodic interest; they are issued at a discount and redeemed at face value.
- Statement 3 is correct: T-Bills are issued for 91, 182, and 364 days and are available for purchase by individuals and institutional investors.
- Statement 4 is correct: T-Bill auctions are conducted on RBI’s E-Kuber platform.
Source– TOI
