Treasury Bills

Introduction
Treasury Bill are the Important Indian Money Market Instrument.
T-bills are short-term securities that mature in one year or less from their issue date. They are issued with three-month, six-month and one-year maturities. T-bills are purchased for a price that is less than their par (face) value; when they mature, the government pays the holder the full par value.

Important:

T-Bills are Sold by Reserve Bank of India and Issued by GOI.

Auction Process of T-Bills

Treasury bills (as well as notes and bonds ) are issued through a competitive bidding process at auctions. If you want to buy a T-bill, you submit a bid that is prepared either non-competitively orcompetitively . In non-competitive bidding, you'll receive the full amount of the security you want at the return determined at the auction. With competitive bidding, you have to specify the return that you would like to receive.

Minimum and Maximum Value

A person who want to buy T-Bills, he can participate in bidding process.

The minimum value to But T-Bills are 25000 and the maximum value is in multiple of 25000rs.

Types of T-Bills:

There are three types of T-Bills in Indian Money Market. We are defining them below:

1) 91 Days: Auction on every Friday

2) 182 days: Auctioned on every alternate Wednesday

3) 364 days: Auctioned on every Alternate Wednesday