Types of Government Securities in India
A government bond is a type of debt instrument that the nation's federal and state governments issue to pay its expenses and control the money supply. Such bonds are frequently the solution when the government needs money for financing government spending and infrastructure development. As a result, the public will be invited to invest by the government through the sale of bonds. The principal and interest on the bond will be repaid by the government at the designated maturity date in accordance with the bond's terms. Under the Reserve Bank of India's watchful eye, the government issues bonds (RBI). To cover the budget imbalance, the RBI issues bonds on behalf of the Indian government. The bonds have been distributed to significant market players over the previous few years, including businesses, commercial banks, and financial institutions. However, in recent years, smaller investors like individuals, cooperative banks, etc. have had access to government bonds. Addition