What are Treasury Bills? Explain its various types as issued by RBI.

Answer 4(a) Treasury Bills: Treasury Bills are money market instruments issued by the Reserve Bank of India (RBI) to finance the short term requirements of the Government of India. These are discounted securities and thus are issued at a discount to face value. The return to the investor is the difference between the maturity value and issue price. In the short term category of investment instruments, the treasury bill carry the lowest risk. RBI issues these at a prefixed date and of a fixed amount. There are four types of treasury bills: 14 day Treasury Bill: The maturity is in 14 days. Its auction is on every Friday of every week. The notified amount for this auction is ₹100 Crore. 91 day Treasury Bill: The maturity is in 91 days. Its auction is on every Friday of every week. The notified amount for this auction is ₹100 Crore. 182 day Treasury Bill: The maturity is in 182 days. Its auction is on every alternate Wednesday (which is not a reporting week). The notified amount for this auction is ₹100 Crore. 364 day Treasury Bill: The maturity period is 364 days. Its auction is on every alternate Wednesday (which is not a reporting week). The notified amount for this auction is ₹500 Crore.