Professional Documents
Culture Documents
lending money market institutions are Government of India and other sovereign bodies
Banks and Development Financial Institutions
PSUs [Public Sector Undertakings]
Private sector organizations
The Government /Quasi government owned noncorporate entities
Treasury Bills
These are the lowest risk category instruments for
the short term.
RBI issues treasury bills [T-bills] at a prefixed day
and for a fixed amount.
Types Of Treasury Bills
There are 3 types of treasury bills.
91-day T-bill: maturity is in 91 days, it is auctioned
on every Friday of every week and the notified
amount for auction is Rs. 100 crores.
182-day T-bill: maturity is in 182 days, it is
auctioned on every alternate Wednesday, which is
not a reporting week and the notified amount for
auction is Rs. 100 crores.
364-day T-bill: maturity is 64 days, it is auctioned
on every alternate Wednesday which is a reporting
week and the notified amount for the auction is Rs.
500 crores.
Certificates of Deposits
After treasury bills, the next lowest risk category
investment option is Certificate of Deposit (CD)
issued by banks and Financial Institutions (FI).
A CD is issued at a discount to the face value, the
discount rate being negotiated between the issuer
and the investor.