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GOVERNMENT SECURITIES, FINANCIAL SECTOR - Coggle Diagram

- - - - • In 2010, Government of India, in consultation with RBI introduced a new short-term instrument, known as Cash Management Bills (CMBs), to meet the temporary mismatches in the cash flow of the Government of India.
      - • The CMBs have the generic character of T-bills but are issued for maturities less than 91 days.
      - Dated G-Secs
        
        • Dated G-Secs are securities which carry a fixed or floating coupon (interest rate) which is paid on the face value, on halfyearly basis. Generally, the tenor of dated securities ranges from 5 years to 40 years.
        
        • The Public Debt Office (PDO) of the Reserve Bank of India acts as the registry / depository of G-Secs and deals with the issue, interest payment and repayment of principal at maturity. Most of the dated securities are fixed coupon securities.
        
        State Development
        Loans (SDLs)
        
        • State Governments also raise loans from the market which are called SDLs.
        
        • SDLs are dated securities issued through normal auction similar to the auctions conducted for dated securities issued by the Central Government. Interest is serviced at half-yearly intervals and the principal is repaid on the maturity date.
        
        • Like dated securities issued by the Central Government, SDLs issued by the State Governments also qualify for SLR. They are also eligible as collaterals for borrowing through market repo as well as borrowing by eligible entities from the RBI under the Liquidity Adjustment Facility (LAF).