CURRENT AFFAIRS FOR UPSC IAS

As many as 17 states tapped financial markets to raise a total of Rs 50,206 crore through auction of state government securities, marking the largest such weekly borrowing ever.

What is a Government Security (G-Sec)?

• A Government Security (G-Sec) is a tradeable instrument issued by the Central Government or the State Governments.
• It acknowledges the Government’s debt obligation.
• Such securities are short term (usually called treasury bills, with original maturities of less than one year) or long term (usually called Government bonds or dated securities with original maturity of one year or more).
• G-Secs are issued through auctions conducted by Reserve Bank of India (RBI).
• In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs).