Q. Consider the following statements in context with the Cash Management Bills:

1. Cash Management Bills are a kind of short term money market instruments with maturity less than 91 days
2. Cash Management Bills are issued on discount
3. Cash Management Bills are introduced only by Central Government

Which among the above statements is/ are correct?
Answer: all are correct
Notes: The Government of India, in consultation with the Reserve Bank of India, finalized and introduced a new short-term instrument, known as Cash Management Bills, to meet the temporary cash flow mismatches of the Government. The Cash Management Bills are non-standard, discounted instruments issued for maturities less than 91 days and could be issued as and when need arises