Government of India Bonds & Securities

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Government of India bonds and securities refer to debt instruments issued by the Indian government to raise funds for various purposes. These instruments are considered safe investments as they are backed by the government and have low default risk.

Here are some types of government bonds and securities issued by the Government of India:

  1. Government of India Treasury Bills (T-Bills): Treasury Bills are short-term debt instruments with maturities of up to one year. They are issued at a discount to face value and are redeemed at face value upon maturity.

  2. Government of India Dated Securities: Dated securities are long-term bonds issued by the government with maturities ranging from 5 years to 40 years. These securities pay regular interest (coupon) to investors, typically semi-annually, and the principal amount is repaid at maturity.

  3. Government Savings Bonds: These are retail bonds issued by the government to individuals. They are available in different series with varying tenures, interest rates, and tax benefits. Government savings bonds are aimed at retail investors and can be held in dematerialized or physical form.

  4. State Development Loans (SDLs): State governments in India also issue bonds known as State Development Loans to finance their fiscal deficits. SDLs are long-term bonds issued by state governments and carry interest payments similar to dated securities.

  5. Inflation-Indexed Bonds (IIBs): Inflation-Indexed Bonds are bonds that provide protection against inflation. The principal amount of these bonds is adjusted based on changes in the Wholesale Price Index (WPI) or Consumer Price Index (CPI). IIBs help investors hedge against inflation risks.

These bonds and securities can be purchased through authorized entities such as banks, primary dealers, and designated stock exchanges. The interest rates, tenures, and other terms of these instruments are determined by the Reserve Bank of India (RBI) and the government.

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