New Delhi: The Reserve Bank of India (RBI) has announced a revised schedule for the auction of Government of India treasury bills. As part of this update RBI has reduced the amount of treasury bills being sold. Further, a new selection of bonds has been introduced for the government’s buyback operations.

“The Reserve Bank of India, in consultation with the Government of India, will have the flexibility to modify the notified amount and timing for auction of Treasury Bills depending upon the requirements of the Government of India, evolving market conditions and other relevant factors, after giving due notice to the market,” the RBI stated. (Also Read: Stock Market Special Session Today, Sensex Jumps 120 Points)

It further added, “Thus, the calendar is subject to change, if circumstances so warrant, including for reasons such as intervening holidays. Such changes, if any, will be communicated through press releases.” (Also Read: Wipro COO Amit Choudhary Resigns; Sanjeev Jain To Take Over)

What are T-bills?

T-bills are short-term debt which are issued by the Government of India to cover its short-term borrowing needs. They are highly liquid and are considered safe investments as they are backed by the government. T-bills come with three different maturity periods with 91 days, 182 days, and 364 days options.

T-bills are sold at a discount to their face value which means that they are sold for less than their nominal value. The return for investors is the difference between the purchase price and the face value.