RBI to issue cash management bills of Rs 25,000 crore on August 6

The RBI will be issuing a 10-day cash management bill on August 6 for Rs 25,000 crore. The cash management bills have the generic character of treasury bills, but are issued at a discount to the face value. These bills are issued on behalf of the government to meet the short-term cash needs of the centre. Unlike treasury bills, however, cash management bills don’t have a coupon attached to it, but are issued at a discount to the face value. At the time of maturity, the face value is repaid to the lender. The cash management bills are also often used for removing liquidity from the system when it is flushed with funds.