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)