Which of the following entities is authorized to issue 'Treasury Bills' (T-Bills) in the Indian financial market?

💡 Solution & Explanation

Treasury bills are short-term zero-coupon debt instruments issued exclusively by the Reserve Bank of India on behalf of the Central Government to fulfill temporary liquidity mismatches. Commercial banks invest in these instruments to maintain statutory liquidity ratios, but they lack the authority to issue them. State governments borrow short-term funds through ways and means advances rather than issuing Treasury bills.