The Government of India Securities (G-Secs) are sovereign securities which are issued by the Reserve Bank of India on behalf of Government of India, in lieu of the Central Government’s market borrowing programme.
Government Securities includes all of these:
- Central Government Securities.
- State Government Securities
- Treasury bills
The Central Government borrows funds to finance its ‘fiscal deficit’. The market borrowing of the Central Government is raised through the issue of dated securities and 364 days treasury bills either by auction or by floatation of loans.
In addition to the above, treasury bills of 91 days are issued for managing the temporary cash mismatches of the Government. These do not form part of the borrowing programme of the Central Government.
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