Treasury bill are the instruments of short-term borrowing by the central government or by a state government. They are promissory notes issued at a discount for a fixed period.


Objectives of Issuing Treasury Bills:


  1. To raise funds for the government for meeting its expenditure thermals
  2. To provide outlet for investment of temporary surplus funds by investors.


Other Features of Treasury Bill:


  1. They are highly liquid
  2. They are safe investments
  3. They give attractive yield
  4. They are approved assets for SLR purposes in the case of bank.
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