Cash Management Bill (CMB)

Cash Management Bills (CMBs) are short-term government securities issued by the Reserve Bank of India on behalf of the Central Government to meet temporary mismatches in cash flows during the fiscal year. Unlike regular Treasury Bills (which have fixed tenors of 91, 182, or 364 days), CMBs are issued for variable and often shorter durations—sometimes as short as a few days—depending on the government's immediate liquidity requirements. CMBs are discounted instruments (issued below face value, redeemed at par) and are considered extremely safe, making them attractive to institutional investors and banks managing short-term surplus liquidity.