Commercial Paper:
(i) Commercial paper is a short-term unsecured promissory note, negotiable and transferable by endorsement and delivery with a fixed maturity period.
(ii) It is issued by large and creditworthy companies to raise short-term funds at lower rates of interest than market rates.
(iii) It usually has a maturity period of 15 days to one year.
Treasury Bills:
(i) A treasury bill is an instrument of short-term borrowing by the Government of India, maturing in less than one year.
(ii) They are issued by the Reserve Bank of India on behalf of the Central Government to meet its short-term requirement of funds.
(iii) They are issued at a price which is lower than their face value and repaid at par and are also known as Zero Coupon Bonds.