{"id":91581,"date":"2025-06-01T11:00:25","date_gmt":"2025-06-01T11:00:25","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91581"},"modified":"2025-06-01T11:00:25","modified_gmt":"2025-06-01T11:00:25","slug":"consider-the-following-statements-1-the-reserve-bank-of-india-man","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-the-reserve-bank-of-india-man\/","title":{"rendered":"Consider the following statements :\n  1. The Reserve Bank of India man"},"content":{"rendered":"<p>Consider the following statements :<\/p>\n<ul>\n<li>1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.<\/li>\n<li>2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.<\/li>\n<li>3. Treasury bills offer are issued at a discount from the par value.<\/li>\n<\/ul>\n<p>Which of the statements given above is\/are correct ?<\/p>\n<p>[amp_mcq option1=&#8221;1 and 2 only&#8221; option2=&#8221;3 only&#8221; option3=&#8221;2 and 3 only&#8221; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option3&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2018<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2018.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2018\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe correct answer is C) 2 and 3 only.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\nThis question pertains to the management of government securities and the characteristics of Treasury Bills in India.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\n1. The Reserve Bank of India (RBI) serves as the banker and debt manager for *both* the Central Government and the State Governments. It manages and services both Government of India Securities (G-Secs) and State Government Securities (State Development Loans &#8211; SDLs). Statement 1 is incorrect.<br \/>\n2. Treasury Bills (T-Bills) are short-term money market instruments. In India, T-Bills are issued *only* by the Central Government to meet its short-term funding requirements. State Governments do not issue T-Bills; they raise market borrowings through SDLs. Statement 2 is correct.<br \/>\n3. Treasury Bills are zero-coupon securities, meaning they do not pay interest. They are issued at a discount to their face value (par value) and redeemed at the par value on maturity. The return to the investor is the difference between the maturity value and the issue price (the discount). Statement 3 is correct.<br \/>\nTherefore, statements 2 and 3 are correct.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>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 &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Consider the following statements :\n  1. The Reserve Bank of India man\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-1-the-reserve-bank-of-india-man\/#more-91581\">Detailed Solution<span class=\"screen-reader-text\">Consider the following statements :<br \/>\n  1. The Reserve Bank of India man<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1114,1120,1190],"class_list":["post-91581","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1114","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Consider the following statements :  1. The Reserve Bank of India man<\/title>\n<meta name=\"description\" content=\"The correct answer is C) 2 and 3 only. 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