Government Securities

Significance

  • Liquidity Management: The RBI will acquire government assets to pump liquidity into the market. If it wishes to reduce liquidity, on the other hand, it will sell government securities. Open Market Operations refers to the RBI's purchasing and selling of government securities in order to regulate market liquidity.
  • Potentially Risk-free Investment: In addition to delivering a return in the form of coupons (interest), G-Secs provide the highest level of security because they carry the Sovereign's commitment to pay interest and repay principal.
  • Flexible Investment Options: G-Secs are offered in a variety of maturities, ranging from 91 days to 40 years, ....
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