Tag: government guaranteed bonds

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What are Government Guaranteed Bonds?

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Government guaranteed bonds are medium to long term bonds (securities) issued by government agencies and in some cases by PSU (public sector undertaking). The interest and the principal in such instruments is guaranteed by the Central Government or the State Government. Since most state government guarantees mean nothing, largely people buy these bonds because there […]

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What are SLR securities? (Statutory liquidity ratio)

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RBI fixes SLR (statutory liquidity ratio) from time to time – currently it is at 25%. RBI requires banks to maintain 25% of Net Demand and Time Liabilities (NDTL) which is to be maintained on daily basis by investment in cash (other than CRR) and unencumbered prescribed Central and State Government securities, Treasury bills, and […]

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