Key Features of G-sec, SDL and T-bill
- Government bonds and Treasury bills are issued by the Government of India
- State Development Loans are issued by the State Government
- Government bonds, State Development Loans and Treasury bills are Issued through Reserve Bank of India
- Government bonds, State Development Loans have longer tenor maturities extending above 30 years
- Treasury bills have maturity of 91 days, 182 days and 365 days
- Government bonds and State Development Loans pay interest every six months
- Treasury bills are zero coupon bonds. They are issued by discount and redeemed at face value
Advantages of investing in G-sec, SDL and T-bill
- Safety: Being Sovereign security, no default risk
- Ease of Exit: Investor can sell the government bonds in the secondary market
- Fixed income investment available across the maturities
- No TDS applicable on interest
- Can be held in existing demat account
Updated on: 04/01/2023
