Consider the following statements : 1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities. 2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments. 3. Treasury bills offer are issued at a discount from the par value. Which of the statements given above is/are correct?

1. Statement 1 is incorrect. The Reserve Bank of India (RBI) acts as the debt manager for both the Government of India and the State Governments. It manages and services securities issued by both central and state governments. 2. Statement 2 is correct. Treasury bills (T-bills) are short-term money market instruments issued only by the Government of India to finance its short-term funding requirements. State Governments do not issue Treasury bills; they issue bonds known as State Development Loans (SDLs). 3. Statement 3 is correct. Treasury bills are zero-coupon securities, meaning they do not pay periodic interest. They are issued at a discount to their face value (par value) and redeemed at par value on maturity. The difference between the issue price (discounted price) and the redemption price (par value) represents the return to the investor.