The short-term bonds are called treasury bills which are issued by the central government which have a fixed maturity period of less than one year.
Long-term bonds are called government bonds which have a maturity period ranging from 5 years to 50 years.
How to Invest
The Reserve Bank of India recently announced that retail investors can now invest directly in the government's primary and secondary bond market by opening gilt accounts (account is credited or debited with treasury bills or government securities) with the national banks and monetary policy regulator.
How To Buy Government Securities
Government Securities, Treasury Bills, and SDL are issued in the primary market through an auction conducted by the RBI. Depending on the eligibility of the investor, they may bid in an auction under Non-Competitive Bidding (NCB) or Competitive Bidding.
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