Treasury Bills are also called T-bills, issued by the Government in various tenures. These instruments offer short-term investment opportunities mostly up to one year.
Several mutual funds and institutions park their money in these T Bills as they are considered very safe, as they are issued by the Government of India.
At present, treasury bills are issued by an auction and is of a duration of 91-day, 182-day and 364-day. There are no treasury bills issued by State Governments.
Treasury bills are available for a minimum amount of Rs.25,000 and in multiples of Rs. 25,000. Treasury bills are issued at a discount and are redeemed at par. Treasury bills are also issued under the Market Stabilization Scheme (MSS).
Treasury Bills are issued by the government under the Market Stabilization Scheme and come in Minimum of Rs 25,000 and more than Rs 25,000 thereafter.