What's New :
Join Our Open Mentorship Sessions, Register here...
UPSC Interview Guidance Program. Register here...

RBI issues draft norms for lending of government securities

  • Category
    Economy
  • Published
    24th Feb, 2023

Context

The Reserve Bank of India came out with draft norms (Reserve Bank of India (Government Securities Lending) Directions, 2023) for lending and borrowing of government securities with wider participation in the securities lending market.

About

Key-highlights of the Draft

  • Government Securities Lending (GSL) transactions shall be undertaken for a minimum period of one day and a maximum period of ninety days.
  • Government securities issued by the central government excluding Treasury Bills would be eligible for lending/borrowing under a GSL transaction. 
  • Government securities issued by the central government (including Treasury Bills) and the state governments would be eligible for placing as collateral under a GSL transaction.
  • An entity eligible to undertake repo transactions in government securities, and any other entity approved by the Reserve Bank would be eligible to participate in GSL transactions as lender of securities. 

What is Government Security (G-Sec)?

  • A Government Security (G-Sec) is a tradable instrument issued by the Central Government or the State Governments.
  • It acknowledges the Government's debt obligation.

Treasury Bill

Treasury bills are money market instruments issued by the Government of India as a promissory note with guaranteed repayment at a later date.

 

Verifying, please be patient.

Our Centers

DELHI (Karol Bagh)

GS SCORE, 1B, Second Floor, Pusa Road, Karol Bagh, New Delhi - 110005 (Beside Karol Bagh Metro Station Gate No. 8)

Get directions on Google Maps

BHUBANESWAR (Jaydev Vihar)

GS SCORE, Plot No.2298, Jaydev Vihar Square, Near HCG Day Care, BBSR - 751013

Get directions on Google Maps

LUCKNOW (Aliganj)

GS SCORE, 2nd Floor, B-33, Sangam Chauraha, Sector H, Aliganj, Lucknow, UP - 226024

Get directions on Google Maps

Enquire Now