Basis of Comparison | T- BILLS
(Treasury bills) | Government Bonds | SDL’s
(State Development Loans) |
Meaning | Treasury Bill is a money market instrument is issued by the Government of India to secure funds to meet the short-term fund requirements of the government. | Govt bonds are the bonds issued by state and central government to borrow loan by paying interest half yearly and repayment of the principal amount on maturity. | SDLs are the bonds issued by state governments to finance the fiscal deficit of their budget. These bonds allow state govt. to borrow loan by paying interest half yearly and repayment of the principal amount on maturity. |
Issued by | RBI on behalf of central government. | By central and state govt. | By state governments. |
Maturity | Short term
- 91 days
- 182 days
- 364 days | Long term | Long term
(usually 10 years) |
Interest | No interest | (Half – yearly)
Twice a year in the primary bank account linked at Jainam | (Half – yearly)
Twice a year in the primary bank account linked at Jainam |
Issue and Redemption | T – bills are issued at discount and are redeemed at par. | Can be issued at par, at premium or at discount. | Can be made isseud at par, at premium or at discount. |