Government Securities (G-Sec)

  • Recently RBI announced buyback of government securities worth ₹ 40,000
    • Its objective is to reduce the existing tight liquidity situation in the banking system.
  • G-Sec is a type of debt instrument issued by the central and state governments.
  • These securities are short term and long term.
    • Short term securities (Treasury bills) – maturity period usually less than 1 year
      • Issuer: Central Government
  • Long term securities (bonds or dated securities): Maturity period 1 year or more
    • Issuer: Central Government and State Government (State Development Loan/SDL)
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