The purchase of one security against the sale of another security carried out by the RBI in the secondary market as part of its open market operations is described as switching.

1. Treasury Bills
(i) Treasury bills are very popular and enjoy a higher degree of liquidity since they are issued by the Government.
(ii) A Treasury bill is nothing but a promissory note issued for a specified period stated there in.
(iii) The Government promises to pay the specified amount mentioned there in to the bearer of the instrument on the due date.
(iv) The period does not exceed a period of one year.
2. Commercial bills
(i) A bill of exchange issued by a commercial organization to raise money for short-term needs.
(ii) These bills are of 30 days, 60 days and 90 days maturity.
(iii) The Commercial Bill is an instrument drawn by seller of goods on a buyer of goods.

A market whereby the government or gilt edged securities can be bought and sold is called 'Government securities market'.

(i) The Commercial Bill is an instrument drawn by a seller of goods on a buyer of goods.
(ii) It possesses the advantages like self-liquidating in nature, recourse to two parties, knowing exact date of transactions, transparency of transactions, etc.