🔆 Government Securities (G-Sec) :

✅ A Tradable instrument issued by the Central Government or the State Governments.


✅ A G-Sec is a type of debt instrument issued by the government to borrow money from the public to finance its Fiscal Deficit.


✅ Kinds :


◽️Short : Term (usually called treasury bills, with original maturities of less than one year
◽️Long : Term (usually called Government bonds or dated securities with original maturity of one year or more)


✅ Issuer :

🔸️ Central Government - issues both, treasury bills & bonds or dated securities

🔸️ State Government - Only bonds or dated securities [State Development Loans (SDLs)]

✅ G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments.

✅ Issue Mechanism : The RBI conducts Open Market Operations (OMOs) for sale or purchase of G-secs to adjust money supply conditions.