Treasury Bills

Treasury Bills Issued by Govt of india through RBI 

Maturity : 91-days, 182-days and 364 days for pre-determined amount

Minimum Amount : Rs.25000/-

Treasury bills are zero coupon securities and pay no interest. Instead, they are issued at a discount and redeemed at the face value at maturity. They are risk free bonds.

The price of T-bills is determined through an auction process where banks and primary dealers are the main participants however it is open for financial institutions, mutual funds, corporate, other business entities, as also individuals.

These are kept in demat form ans is held in a SGL account maintained by banks with RBI

Secondary market settlement of T-bills take place through clearing corporation of india ltd (CCIL) Yield is known as implicit yield.