Auction of 91-Day, 182-Day and 364-Day Treasury Bills
Distilled Policy Brief
- Retail investors can participate on a non-competitive basis up to a maximum of 5 percent of the notified amount through the Retail Direct portal.
🎯 Prelims High-Yield Examination Points
Treasury bills are short-term debt instruments issued by the Government of India through auctions conducted by the Reserve Bank of India, featuring non-competitive bidding allocations for retail investors up to 5 percent of the notified amount.
⚖️ Mains Analytical & Syllabus Linkages
Analyze the role of Treasury bills in managing short-term government borrowing, monetary policy operations, and the financial inclusion of retail investors through platforms like RBI Retail Direct.
🎯 UPSC Prelims Practice Drill
With reference to the auction of Government of India Treasury Bills, consider the following statements regarding retail investors: 1. Retail investors can participate on a non-competitive basis through the Retail Direct portal. 2. The allocation for retail investors is restricted to a maximum of 5 percent of the notified amount. 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
Individual retail investors can participate in Government of India Treasury Bill auctions on a non-competitive basis through the RBI Retail Direct portal. Furthermore, the allocation for retail investors under this non-competitive scheme is restricted to a maximum of 5 percent of the notified amount. Therefore, both statements are 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.