Which of the following financial market instruments is legally classified as a promissory note issued by the Government of India for a period of less than one year to finance short-term temporary deficits?

💡 Solution & Explanation

Treasury Bills are short-term money market instruments issued by the central government through the Reserve Bank of India at a discount to their face value to bridge temporary fiscal deficits. They are issued for maturities of 91 days, 182 days, and 364 days, unlike dated government securities which are long-term bonds. T-bills carry zero default risk as they are sovereign-backed debt instruments.