T-Bills mean Treasury Bills or the bills issued by the Government. The T-Bill is issued by the Government to fulfill its short term money needs. The T-bills are again issued at discount and the face value is higher than the discount value.
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In India, the active T-Bills at present are 91-days T-Bills and 364-days T-Bills.
Please note that T-bills have an advantage over the other bills such as
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Zero Risk weightage associated with them. They are issued by the government and sovereign papers have zero risk assigned to them
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High liquidity because 91 days and 364 days are short term maturity.
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Transparency
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The secondary market is very active so they have a higher degree of tradability.
hello, sir
can you please explain the terms Treasury Bill and Commercial Papers (or) certificate of deposit with some Real time examples.
That would help us a lot. Thanks in Advance.
Regards
pavan