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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 give above is/are correct?

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 give above is/are correct? Correct Answer 2 and 3 only

The Correct Answer is Option 3 i.e 2 and 3 only.

  • Government security (G-Sec) is a tradeable instrument issued by the central government or state governments. It acknowledges the government’s debt obligations.
  • The G-Secs issuances are managed by the RBI, who on behalf of the Centre, regularly conducts G-Sec auctions every Friday.
  • State Government transactions are carried out by RBI in terms of the agreement entered into with the State Governments.
  • Treasury bills:
    • They are short-term debt instruments issued by the Central government. State Government don't issue treasury bills.
    • Treasury bills play a vital role in cash management of the Government.
    • Being risk-free, their yields at varied maturities serve as short term benchmarks and help pricing varied floating-rate products in the market.
    • Treasury bills are issued at a discount and redeemed at the face value at maturity.

Related Questions

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With reference to India, consider the following statements : 1. Retail investors through demat account can invest in ‘Treasury Bills’ and ‘Government of India Debt Bonds’ in primary market. 2. The Negotiated Dealing System Order Matching’ is a government securities trading platform of the Reserve Bank of India. 3. The ‘Central Depository Services Ltd.’ is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange. Which of the statements given above is/are correct?
Which among the following is NOT a correct statement?  1. The Reserve Bank of India worked as Central Bank of Burma till April 1947 2. The Reserve Bank of India worked as Central Bank of Pakistan till June 1948 3. The Reserve Bank of India worked as Central Bank of Bangladesh from January 1972 to December 1975 4. The Reserve Bank of India commenced its operations on April 1, 1935 
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. If M votes the same way that O dose on all three bills, which of the following can be determined ?
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. If any bill is to be passed,which of the following must be among the legislators who vote in favor of it?
In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: In a bid to find a successor to founder CEO Rana Kapoor, The Yes Bank has formed a five member panel including two members from outside the bank, less than a week after Reserve Bank of India (RBI) cut short his tenure until January 31 2019. In a press release sent to the exchanges late on Tuesday evening, Yes Bank said that the “search and selection committee” would comprise of three members of the bank’s nomination and remuneration committee and also two external members, which the bank did not specify.  Courses of action: I. However, the board has requested the Reserve Bank of India (RBI) to grant an extension to Kapoor up to September 2019 ‘for finalization of audited financial statements for fiscal year ending March 2019 and in order for the statutory AGM process to be completed’. II. The board has also recommended the elevation of senior group presidents Rajat Monga and Pralay Mondal as executive directors ‘to ensure a long term succession plan within Yes Bank, and given the demonstrated track record of these two senior leaders’. All this will be subject to RBI approval.  III. The panel will comprise of five members and will focus on find a successor to Rana Kapoor.
Directions : In each of the following questions a statement is given, followed by three conclusions. Give answer :

Statement : The Central Government has directed the State Governments to reduce government expenditure in view of the serious resource crunch and it may not be able to sanction any additional grant to the states for the next six months.

Assumptions :
I. The State Governments are totally dependent on Central Government for its expenditures.
II. The Central Government has reviewed the expenditure account of the State Government.
III. The State Governments will abide by the directive.
Assertion (A) The Reserve Bank of India is entrusted with the management of the public debt and issue of new loans and treasury bills on behalf of the Central and State Governments.
Reason (R) The Governor and the Deputy Governors of Reserve Bank of India are appointed by the Central Government.
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. which of the following must vote in favor of Bill 1 ?
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. which of the following cannot be true ?