What are Government Securities?

A government security is a bond or other type of debt obligation issued by the government with the promise of repayment at the maturity date. Types of government securities Various types of securities include the following: Treasury Bills - They are short term securities with a maturity period that ranges from a few days to weeks. Treasury Bonds - They are long term securities with a maturity period of about 30 years where interest is paid every six months. This means it cuts down on the excess flow of money in the economy by issuing government securities instead. In India, government securities are sold by the Reserve Bank of India in the primary market consisting of commercial banks, state and central government, financial institutions and insurance companies through an auction which is open for bidding.