Consider the following statements:

  1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
  2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
  3. Treasury bills offer are issued at a discount from the par value.

Which of the statements given above is/are correct?

[UPSC Civil Services Exam – 2018 Prelims]

(a) 1 and 2 only

(b) 3 only

(c) 2 and 3 only

(d) 1, 2 and 3


Answer: (c)        

Explanation:

  • Government securities (G-Secs) are tradable instruments that are issued by the central government or state governments to acknowledge their debt obligations.
  • The management of G-Sec issuances is entrusted to the Reserve Bank of India (RBI), which conducts regular G-Sec auctions on behalf of the central government every Friday.
  • Regarding state government transactions, the RBI carries out these operations based on agreements established with the respective state governments.

Treasury bills

  • Treasury bills, also known as T-bills, are short-term debt instruments issued exclusively by the central government. They are not issued by state governments.
  • These T-bills play a crucial role in the cash management of the government. They provide a means for the government to meet short-term funding requirements efficiently.
  • Due to their risk-free nature, the yields of treasury bills at different maturities serve as important benchmarks for short-term interest rates. They aid in pricing various floating-rate products in the market.
  • Treasury bills are issued at a discount, meaning they are sold at a price lower than their face value, and they are redeemed at their full face value upon maturity.

Consider the following statements:                                                                   The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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Consider the following statements:                                                         The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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