What are Government Securities?

What are Government Securities?

Government securities are government debt issuances used to fund daily operations, and special infrastructure and military projects.

They guarantee the full repayment of invested principal at the maturity of the security and often pay periodic coupons or interest payments.

Since the Government of India backs these, these are virtually risk-free investments.

G-Secs with a maturity of less than 1 year are called T-Bills (Treasury bills) and those greater than 1 year are called Bonds.

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