Question

Explain the types of Treasury Bills?

Answer 1

1. 91 Days Treasury Bills: 91 days Treasury Bills are issued at a fixed discount rate of 4% as well as through auctions.
2. 182 Days Treasury Bill: The RBI holds both 91 days and 182 days Treasury Bills and they are issued on a tap basis throughout the week.
3. 364 Days Treasury Bills:
   a. 364 days Bills do not carry any fixed rate.
   b. The discount rate on these Bills is quoted in the auction by the participants and accepted by the authorities.
   c. Such a rate is called the cut-off rate.