Types of Treasury Bills

Types of Treasury Bills Treasury Bills are issued to the public and other financial institutions for meeting the short-term financial requirements of the Central Government. These bills are freely marketable and they can be bought and sold at any time and these bill are tradable in secondary market as well. On the basis of periodicity, Treasury Bills may be classified into three. They are: ) days Treasury Bills ) days Treasury Bills and ) days Treasury Bills Ninety one days Treasury Bills are issued at a fixed discount rate of per cent as well as through auctions. The RBI holds days and Treasury Bills and they are issued on tap basis throughout the week. days Treasury Bills do not carry any fixed rate. The discount rate on these bills are quoted in auction by the participants and accepted by the authorities. Such a rate is called cut off rate.