New Delhi: The Union government is planning to borrow Rs 3.94 lakh crore from the market via treasury bills (T-bills). Earlier, the central bank released the calendar for the auction of T-bills.
Treasury bills are short-term financial instruments issued by RBI on the Government of India’s behalf (GOI) in the form of a promissory note. The primary objective of a treasury bill is to meet the short-term financial requirements of the central government. For investors, they present one of the safest investments with the highest liquidity among government securities. Treasury bills come with four different types of tenures 14, 91, 182 and 364 days. Investors can make some profit from a T-bill as it is issued at a discounted price and redeemed at a higher orignal value.
The central government is set to borrow Rs 1.68 lakh crore via 91-day T-bills, Rs 1.28 lakh crore via 182-day T-bills and Rs 98,000 crore via 364-day T-bills.
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‘The RBI, in consultation with the central government, will have the flexibility to modify the notified amount and timing for auction of T-Bills depending upon the Centre’s requirements, evolving market conditions and other relevant factors, after giving due notice to the market,’ the RBI said.
The overall borrowings from the T-bills have gone up on quarterly basis. In October-December, the government was set to raise Rs 2.47 lakh crore via T-bills.
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