In the below image, who is issuing treasury bill to whom?
Dear student,
A Treasury bill is basically an instrument of short-term borrowing by the Government of India maturing in less than one year. They are also known as Zero Coupon Bonds issued by the Reserve Bank of India on behalf of the Central Government to meet its short-term requirement of funds. Treasury bills are issued in the form of a promissory note. They are highly liquid and have assured yield and negligible risk of default. They are
A Treasury bill is basically an instrument of short-term borrowing by the Government of India maturing in less than one year. They are also known as Zero Coupon Bonds issued by the Reserve Bank of India on behalf of the Central Government to meet its short-term requirement of funds. Treasury bills are issued in the form of a promissory note. They are highly liquid and have assured yield and negligible risk of default. They are
issued at a price which is lower than their face value and repaid at par. The difference between the price at which
the treasury bills are issued and their redemption value is the interest receivable on them and is called discount treasury bills are available for a minimum amount of Rs 25,000 and in multiples thereof.
So, treasury bills are issued by RBI on behalf of the government to the general public.
So, treasury bills are issued by RBI on behalf of the government to the general public.
Regards