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Treasury Bills

 
Treasury Bills are money market instruments offered to finance short term debt obligation of the Government of India. These short term instruments aid in pluging in the short term liquidity mismatches of the Central Government. In simple words, it acts as the working capital of the Central Government.
 
Treasury Bills, or T-Bills as they are colloquially called, are generally issued for a tenor of 91 Days, 182 Days and 364 Days. These are discounted instruments i.e. they are issued at a discount to par value. On maturity, they are redeemed at par value, with the difference between the discounted rate (at the time issuance) and maturity value being the return earned on such investments. The minimum amount in which they can be traded is Rs 25,000.
 
Just as in case of Dated G-Secs and SDLs, non competitive bidding is allowed in T-Bills. However, participation in the same is restricted only to State Governments, eligible Provident Funds, select foreign central banks and is not available to the co-operative banks for proprietary bids. Also, in case of T-Bills, the amount accepted for non-competitive bids is over and above the notified amount and no limit has been placed on the maximum amount that can be bid under this facility.
 
The trading and settlement mechanism for T-Bills transactions is similar to those for Dated G-Secs and SDLs. Moreover, it qualifies as an SLR investment and can also be used as collateral in repo transactions.
 
Clients interested buying/selling T-Bills may contact our Sales Personnel on 022-66202224/25/28. We endeavor to provide the best possible returns to our clients, keeping in line with their overall investment objectives.
 

Latest News

In its Fifth Bi-Monthly
In its Fifth Bi-Monthly Monetary Policy for FY19, the MPC-panel maintained ‘status quo’. Consequently, key policy rates remained unchanged - Repo rate at 6.50%, Reverse repo at 6.25% and MSF at 6.75%.
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Inflation projections for
Inflation projections for 2018-19 were revised downwards as food inflation has remained benign. It is projected at 2.7%-3.2%% in H2 FY19 (3.8%-4.5% previously) and 3.8%-4.2% in H1 FY20.
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Growth for FY19
Growth for FY19 is projected at 7.4% with 7.2%-7.3% in H2 FY19 (7.3%-7.4% previously). Growth in H1 FY20 is projected to stand at 7.5%.
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Belying market expectations, CPI for Nov-18
Belying market expectations, CPI for Nov-18 stood at a 17 month low of 2.33% vis-à-vis 3.38% (3.31% previously) observed in the previous month aided by a strong favorable base and continued moderation in food inflation. However, core CPI edged higher to 6.18% from 5.81% in the previous month.
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Industrial production witnessed a sharp rise
Industrial production witnessed a sharp rise of 8.1%in Oct-18 vis-à-vis 4.5% in Sep-18. On sequential basis, upward momentum was observed across sectors with Mining at 14.2%, Electricity at 1.9% and Manufacturing at 1.6%.
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Wholesale inflation for Nov-18
Wholesale inflation for Nov-18 came in at 4.64%, lower than 5.28% registered in Oct-18. Despite inflationary pressures from food items, lower fuel prices and a favourable base effect led to this downtick in inflation. Consequently, core WPI inched down to 4.88%, as compared to 5.15% in Oct-18
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