RBI: Guidelines for issue of Certificate of Deposit
- Eligibility: CDs can be issued by (i) Scheduled commercial banks (excluding RRBs & Local area bank); (ii) Selected FIs that have been permitted by RBI.
- Aggregate Amount: Banks have the freedom to issue but FIs can only issue within Specified limit
- Minimum size of issue should be 1 lakh.
- Maturity should not be less than 7 days and not more than one year.
- CDs may be issued at discount.
- Ds may be transferred as per the procedure prescribed. CDs in physical form only are freely transferable by endorsement and delivery.
- Banks/FIs cannot grant loans against CDs.
- The physical certificates may be presented for payment by the last holder.