Treasury bills (T-bills) are short-term debt instruments issued by the government of India to borrow money. T-bills are highly liquid and carry no risk of default as they are guaranteed by the government. There are various types of T-bills including 91-day bills that are regularly auctioned by the Reserve Bank of India. T-bills are sold at a discount to face value and redeemed at par, with the interest rate determined by the discount at auction.

1. I N T RO D U C T I O N O F T- B I L L
MARKET
 A particular kind of finance note put out by the government of
the country. Treasury bills are highly liquid because there cannot be a
better guarantee of repayment than the one given by the government.
They are claims against the government.
 That means when you buy a Treasury, we are actually loaning
money to the government and the government in turn is paying you
interest on the borrowed money.

2. LOVELY PROFESSIONAL
UNIVERSITY
Presentation Topic: Treasury Bill Market
Presented by :
Asma Khanam
Roll No: A20

3. IMPORTANCE QUALITIES OF
T- B I L L S
 High liquidity.
 Absence of risk of default.
 Readily available
 Assured yield
 Low transaction cost

4. TYPES OF T-BILLS
 Ordinary T-bills:-
Ordinary T-bills are issued to the public and the RBI for
enabling the government to meet the needs of supplementary short
term finance.
 Adhoc T-bills:-
The practice of issuing adhoc TBs has been discounted
through the singing of two agreement between the government and
the RBI.

5. T-BILLS RATE
 Treasury bills rate is the rate of interest at which treasury
bills are sold by RBI.
 The effective return on treasury bills is the discount at
which they are sold and their redemption value.

6. PRESENT STATUS
 At present the government of India issues four types of treasury
bills trough auctions namely 14 day ,91 day , 182 day and 364 day .
 There are no treasury bills issued by state Government.
 T-bills are available for a minimum amount Rs. 25000 and in
multiple Rs. 25000. T-bills are issued at a discount and are redeemed
at par.

7. AUCTION
 T-bills are auctioned every alternative week of Wednesday.
 The RBI issues quarterly calendar of T-bills auction which is
available at the banks website.
 All T-bills are now sold through an auction process according to a
fixed auction calendar, announced by RBI.

8. 91 DAY T-BILLS AUCTION
 Published on Saturday Nov. 11,2010 at 13:50 1 updated at Saturday
Nov.11 2010 at 14:27
 The RBI has announced the auction of 91 days Government of
India Treasury Bills for notified amount of Rs 2000cr.
 The auction will be conducted on Nov 15 2010.
 The sale will be subject to the terms and conditions specified in

9. CONTD……….
 the General Notification No. F.Z.(12)-W and M/97 dated 31st March 1998
issued by Government of India and as amended from time
 Tender should be submitted in the prescribed form on Wednesday November
15,2010 by 12:30 P..M.
 Results will be announced on the same evening.
 Payments by success full bidders will be on Friday, November 17,2010.
 Any person in India including individuals, firms, companies, corporate bodies.
 Trusts and Institutes can purchase T-bills.

10. FORM
 The T-bills are issued in the form of Promising note in Physical
Form or by credit Subsidary General Ledger (SGL) account or Gill
account in dematerialised form.

11. MINIUM AMOUNT OF BIDS
 Bids for treasury bills are to be made for a minimum amount of
Rs25000/- only and in multiples there of.

12. REPAYMENTS
 The T-Bills are repaid as par on the expiry of their tenor at the
office of RBI, Mumbai.

13. YIELD CALCULATION
 The yield of a T-Bill is calculated as per the following formulla:-
 Y=(100-P)*365*100/P*D
 Y:-Discounted Yield
 P:-Price
 D:-Days of maturity

14. SALIENT FEATURESOF THE
AUCTION TECHNIQUE
 The auction of T-Bills is done only at RBI Mumbai.
 Bids are submitted in terms of price per Rs100. e.g a bid for 91-
day . T-Bill auction could be for Rs97.50. Auction Committee of
RBI decides the cut-off price and results are announced on the
same day.