Q. Which of the following Treasury bill is discontinued in India?

[A] 14, day Treasury bill

[B] 91, day Treasury bill

[C] 182, day Treasury bill

[D] 364, day Treasury bill

Answer: A
Notes:

Explanation: Treasury Bills (TBs): This instrument of the money market though present since Independence got organized only in 1986.

  • They are used by the Central Government to fulfill its short-term liquidity requirement up-to the period of 364 days.
  • There developed five types of the TBs in due course of time: (a) 14-day (Intermediate TBs) (b) 14-day (Actionable TBs) (c) 91-day TBs (d) 182-day TBs (e) 364-day TBs Out of the above five variants of the TBs, at present only the 91-day TBs, 182-day TBs and the 364-day TBs are issued by the government.
  • The other two variants were discontinued in 2001.

Source: TMH Ramesh Singh