Financial Instruments

🔔 Latest Update (20 Dec 2025): Source

The Reserve Bank of India (RBI) has announced the auction of Treasury Bills (T-Bills) with maturities of 91-day, 182-day, and 364-day. These T-Bills are short-term debt instruments issued by the government to meet its short-term financial requirements. The auction details, including the amount to be auctioned and the dates, are specified in the RBI press release. These auctions are a regular feature of the government's borrowing program and impact the money market and short-term interest rates. The yields on these T-Bills are closely watched by market participants as indicators of the prevailing interest rate scenario.

This is a sub-sector of the money market for very short-term funds. If the money is borrowed for only one day, it is called 'Call Money'. If the money is borrowed for more than one day but up to 14 days, it is called 'Notice Money'. It is primarily used by banks to maintain their Cash Reserve Ratio (CRR).

These are short-term debt instruments issued by the Government of India. They are used to manage short-term liquidity. A key feature is that they are 'Zero-Coupon' bonds. This means they do not pay interest. Instead, they are sold at a lower price (discount) and bought back at full price (par). For example, a Rs 100 bill might be sold for Rs 98. The Rs 2 gain is the investor's profit.

Commercial Paper is a short-term, unsecured promissory note. Only highly-rated, large companies can issue these. Because they are unsecured, investors rely purely on the company's reputation. They were introduced in India in 1990 to help companies raise money for working capital directly from the market instead of taking bank loans.