Banking Topics of interest


CERTIFICATE OF DEPOSITS

This scheme was introduced in July 1989, to enable the banking system to mobilise bulk deposits from the market, which they can have at competitive rates of interest.
The major features are:
Who can issue Scheduled commercial banks (except RRBs) and All India Financial Institutions within their `Umbrella limit’.
CRR/SLR Applicable on the issue price in case of banks
Investors Individuals (other than minors), corporations, companies, trusts, funds, associations etc
Maturity Min: 7 days Max : 12 Months (in case of FIs minimum 1 year and maximum 3 years).
Amount Min: Rs.1 lac, beyond which in multiple of Rs.1 lac
Intt. rate Market related. Fixed or floating
Loan Against collateral of CD not permitted
Pre-mature cancellation Not allowed
Transfer Endorsement & delivery. Any time
Nature Usance Promissory note. Can be issued in Dematerialisation form only only wef June 30, 2002
Other conditions
• If payment day is holiday, to be paid on next preceding business day
• Issued at a discount to face value
• Duplicate can be issued after giving a public notice & obtaining indemnity

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