UPSC Previous Year Question | Prelims GS | 2018

Consider the following statements: 1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities. 2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments. 3. Treasury bills offer are issued at a discount from the par value. Which of the statements given above is/are correct?

  1. 1 and 2 only
  2. 3 only
  3. 2 and 3 only
  4. 1, 2 and 3

Answer

Correct Answer

2 and 3 only

Explanation

Statement 1 is wrong: the RBI also manages State Government securities (State Development Loans) as debt manager. Only the Centre issues Treasury Bills, and they are issued at a discount to face value and redeemed at par.

Topics: economy, government securities, money and banking, treasury bills and g-secs