Detailed Explanation:

Answer: Option 3 — 2 and 3 only

Only statements 2 and 3 are correct. The RBI manages securities for both Central and State Governments, making statement 1 incorrect. Treasury Bills are exclusively issued by the Government of India (not by states), and they are zero-coupon instruments issued at a discount to face value and redeemed at par on maturity.

❌ Statement 1 – Incorrect: RBI manages and services both Government of India Securities and State Government Securities (State Development Loans).
✅ Statement 2 – Correct: Treasury Bills are issued only by the Government of India; State Governments issue State Development Loans (SDLs) instead.
✅ Statement 3 – Correct: Treasury Bills are zero-coupon instruments issued at a discount from par value and redeemed at par on maturity.

📝 Short Notes: Government Securities and Treasury Bills

• RBI as Debt Manager: RBI acts as banker and debt manager for both Central Government and State Governments under agreements.
• Treasury Bills (T-Bills): Short-term money market instruments issued only by the Government of India through RBI. Maturities: 91 days, 182 days, and 364 days.
• Zero-Coupon Instruments: T-Bills do not carry any interest payment; they are issued at a discount and redeemed at face value. The difference represents the implicit interest.
• State Government Borrowing: States cannot issue Treasury Bills. They issue State Development Loans (SDLs) for their borrowing requirements, which are dated securities with coupon payments.
• Government Securities (G-Secs): Long-term debt instruments issued by both Central and State Governments. Central G-Secs and SDLs are managed by RBI.