Q56.
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 are issued at a discount from the par value. Which of the statements given above is/are correct?
Answer
C
Explanation
Statement 1 is not correct: The RBI manages public debt on behalf of BOTH the central AND state governments (on basis of separate agreements). Statement 2 is correct: Treasury bills are short term debt instruments issued only by the Government of India - state governments do not issue T-bills. Statement 3 is correct: Treasury bills are zero coupon securities issued at a discount and redeemed at face value at maturity.