Bonds & Securities

Draft Norms for Lending and Borrowing of G-Secs

• Recently, the Reserve Bank of India released Draft Reserve Bank of India (Government Securities Lending) Directions, 2023.
• The RBI proposed introduction of securities lending and borrowing in Government Securities (G-sec) with an aim to facilitate wider participation in the securities lending market by providing investors an avenue to deploy idle securities and enhance portfolio returns.

Types of G-Secs

• Treasury Bills (T-Bills): Treasury bills are financial instruments that do not provide regular interest payments. Instead, they are issued at a discounted price and are redeemed at their face value upon maturity.
• Cash Management Bills ....