y y y y y y y y y y y

CDs can be issued by all scheduled commercial banks except RRBs. Banks have freedom to issue whereas FIs may also issue but within the limits as per RBIs norms. Minimum Amount Rs 1 lac and in multiples of Rs. 1 lac. CDs are transferable by endorsement. CRR & SLR are to be maintained. CDs are to be stamped. CDs can be issued to individuals, corporations, trusts etc. Nris Can may also subscribe , only on non repatriable basis. For bank: Minimum period 7 days, Maximum period 1 year. For FIs: Minimum period 1 year, Maximum period 3 year. May be issued at a discount on face value.

Guidelines of CDs

Guidelines of CDs according RBI

Eligibility y Aggregate Amount y Minimum Size of Issue and Denominations y Who can Subscribe? y Maturity y Discount/ Coupon Rate y Reserve Requirements
y

Transferability Loans/Buy-backs Format of CDs Security Aspect Payment of Certificate Accounting Standardised Market Practices and Documentation y Reporting
y y y y y y y

Issue of Duplicate Certificates

In case of the loss of physical certificates, duplicate certificates can be issued after compliance with the following:
y y y y

A notice is required to be given in at least one local newspaper Lapse of a reasonable period (say 15 days) from the date of the notice in the newspaper; and Execution of an indemnity bond by the investor to the satisfaction of the issuer of CDs. The duplicate certificate should only be issued in physical form. No fresh stamping is required as a duplicate certificate is issued against the original lost CD. The duplicate CD should clearly state that the CD is a Duplicate one stating the original value date, due date, and the date of issue (asDuplicate issued on ________)

CDs Format