91-Day, 182-Day and 364-Day T-Bill Auction Result: Cut-off
Distilled Policy Brief
- The Reserve Bank of India conducted auctions for 91-Day, 182-Day, and 364-Day Treasury Bills (T-Bills) with total notified face values of Rs 8,000 crore, Rs 8,000 crore, and Rs 7,000 crore respectively.
- Treasury Bills are short-term money market instruments issued by the Government of India at a discount to face value and redeemed at par upon maturity.
- The implicit yields to maturity (YTM) for the 91-Day, 182-Day, and 364-Day T-Bills stood at 5.7281%, 6.2896%, and 6.4891% respectively.
🎯 Prelims High-Yield Examination Points
T-Bills are issued only by the Central Government in India (not by State Governments) across three tenors: 91-day, 182-day, and 364-day, serving as zero-coupon securities.
⚖️ Mains Analytical & Syllabus Linkages
Understanding T-Bill auctions helps analyze short-term liquidity management, monetary policy transmission, and government borrowing patterns in the domestic debt market.
🎯 UPSC Prelims Practice Drill
With reference to Treasury Bills (T-Bills) issued in India, consider the following statements: 1. They are short-term money market instruments issued exclusively by the Reserve Bank of India on behalf of corporate entities. 2. They are issued at a discount to the face value and redeemed at par upon maturity. Which of the statements given above is/are correct?
- [A] 1 only
- [B] 2 only
- [C] Both 1 and 2
- [D] Neither 1 nor 2
▶ Reveal Official Answer & Analytical Explanation
Treasury Bills are short-term money market instruments issued by the Government of India (not corporate entities) to bridge short-term liquidity gaps. They are issued at a discount to their face value and redeemed at par upon maturity. Therefore, statement 1 is incorrect and statement 2 is correct.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.