Key Features of G-sec, SDL and T-bill

• Government bonds and Treasury bills are issued by the Government of India
• State Development Loans are issued by the State Government
• Government bonds, State Development Loans and Treasury bills are Issued through Reserve Bank of India
• Government bonds, State Development Loans have longer tenor maturities extending above 30 years
• Treasury bills have maturity of 91 days, 182 days and 365 days
• Government bonds and State Development Loans pay interest every six months
• Treasury bills are zero coupon bonds. They are issued by discount and redeemed at face value

Advantages of investing in G-sec, SDL and T-bill

• Safety: Being Sovereign security, no default risk
• Ease of Exit: Investor can sell the government bonds in the secondary market
• Fixed income investment available across the maturities
• No TDS applicable on interest
• Can be held in existing demat account