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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

Surprising on the downside, CPI print for Feb-18 stood at 4.44% as against 5.07% in the previous month. Deflationary pressures emanating from the food basket as well as a favorable statistical base led to this fall.
IIP, the country’s barometer for production activity, maintained strong recovery momentum, growing at 7.5% in Jan-18 after posting 7.1% in Dec-17.
WPI inflation
WPI inflation for the month of February came in at 2.48% vis-à-vis 2.84% in January despite a lack of sequential momentum due to a favorable statistical base. Deflationary momentum in primary articles was offset by a rise in fuel and manufacturing prices.
Indias trade
India’s trade deficit narrowed to USD 11.98 Bn in February compared to USD 16.29 Bn in January. Imports fell -7.1% to USD 37.81 Bn while exports jumped 6.0% to USD 25.83 Bn in February.