A heterogeneous investor base with different time horizons, risk preferences, and trading motives ensures active trading, creating liquidity and allows borrowings at reasonable cost. From the investors’ perspective, there is a need for investment options that provide decent returns and protect the capital. G-sec are apt investment products that would cater to these needs.
Elimination of paper-based reporting system Under the present system, it is a government requirement that all deposits in the government account should be accompanied by an appropriate challan. The challans are in multiple copies, different shapes and sizes. This requirement of the government has constrained the process of electronic banking in government business.