What are government securities?

The Reserve Bank of India (RBI) will give small investors direct access to its government securities trading platform.

Daily Current Affairs Quiz 2021

Retail investors can directly open their gilt accounts with RBI, and trade in government securities. The RBI Governor described this as a “major structural reform.”

Government Securities (or g-secs) are debt instruments issued by the government to borrow money.

The two key categories are:

• Treasury bills – short-term instruments which mature in 91 days, 182 days, or 364 days, and
• Dated securities – long-term instruments, which mature anywhere between 5 years and 40 years.