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Certificate of Deposit (CD) in Indian Financial Market



  Jun 12, 2024

Certificate of Deposit (CD) in Indian Financial Market


Parameter Description
Eligibility Issued by scheduled commercial banks and select All-India Financial Institutions approved by RBI.Regional Rural Banks and Local Area Banks can't issue.
Minimum Amount Rs. 1 lakh from a single subscriber and in multiples of Rs. 1 lakh thereafter.
Subscribers Individuals, corporations, trusts, funds, associations, and NRIs.
Maturity for Banks Minimum 7 days and maximum 1 year.
Maturity for FIs Minimum 1 year and maximum 3 years.
Pricing Issued at a discount on face value.
Reserve Requirements Banks have to maintain CRR and SLR on the issue price.
Transferability Freely transferable.
Loans & Buy-back Banks/FIs cannot grant loans against CDs nor buy-back their own CDs before maturity.

This table provides a comprehensive overview of the key features and regulations governing the Certificate of Deposit (CD) in India. It serves as a ready reference for understanding this financial instrument as per the guidelines issued by the Reserve Bank of India (RBI).


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