Prelims 2018 · Economy · Question 56
Consider the following statements:
- The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
- Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
- Treasury bills are issued at a discount from the par value.
Which of the statements given above is/are correct?
Answer
2 and 3 only
1. Incorrect. RBI acts as banker and debt manager for both the Government of India and State Governments; it manages and services State Development Loans (SDLs) too.
2. Correct. Treasury Bills (T-bills) are short-term instruments issued only by the Government of India; State Governments do not issue treasury bills.
3. Correct. T-bills are zero-coupon instruments issued at a discount to face/par value and redeemed at par.
Hence, statements 2 and 3 only are correct.