G-sec
Also called Government security
Government security: a bond or bill issued by the central or a state government to borrow money.
A G-sec, or government security, is how the government borrows. Short-term ones are Treasury bills; longer dated securities, usually 5 to 40 years, pay a coupon every six months. State governments issue similar bonds called state development loans. Individuals can buy them directly through RBI Retail Direct. See bonds and government securities.
Questions people ask
What is the full form of G-sec?
G-sec stands for government security. It's a tradable bond or bill issued by the central government or a state government to borrow money. Short-term ones are Treasury bills; longer ones, usually 5 to 40 years, are dated securities that pay interest twice a year.
Are G-secs risk-free?
The RBI describes them as free of credit risk, since default isn't a realistic concern. But their prices change with interest rates, so if you sell before maturity you can get more or less than you paid.
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