CERTIFICATE OF DEPOSITS

CONCEPT

 A CD is a short term security (7 days to 365 days) issued

by a commercial bank at a discount to the face value.

 CDs are short term time deposits issued by commercial

banks and financial institutions.
FEATURES
 Short term negotiable instrument.
 Issued at discount and redeemed at par value.
 Issued by scheduled commercial banks or financial
institutions which have been permitted by RBI to
raise short term resources.
 Maturity is 7 days to 1 year (1year to 3 years for
FIs).
 Denomination is Rs. 5 Lakh.