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.

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