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 ?
Show answer
Answer: C. Statement 1 is wrong: RBI manages and services State Government securities (State Development Loans) too. Statement 2 is correct: only the Central Government issues treasury bills. Statement 3 is correct: treasury bills are issued at a discount and repaid at face value. So 2 and 3.
Watch for: Students forget that RBI is the debt manager for States as well as the Centre.
Why the other options are wrong
- A. Wrong because RBI also manages State Government securities.
- B. Wrong because statement 2 is also correct.
- D. Wrong because statement 1 is false.
Source to check: RBI FAQs 'Government Securities Market in India – A Primer' (rbi.org.in); RBI Act, 1934, Section 21A
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.