07-12-2012, 04:19 PM
Certificates of deposits
Certificates of deposits.pptx (Size: 56.69 KB / Downloads: 24)
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’.
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