Government bonds are debt securities issued by the government to raise funds for various purposes, such as infrastructure development and fiscal deficit financing. They are considered low-risk investments and offer fixed interest payments over a specified period. In India, government bonds are issued by the Reserve Bank of India (RBI) on behalf of the central government.
Investing in government bonds offers several benefits. They provide a stable and predictable source of income through regular interest payments. Government bonds are also considered safe investments as they are backed by the full faith and credit of the government. Additionally, government bonds can help diversify an investment portfolio and reduce overall risk.