Question

Banks, excluding RRBs, can raise funds through which of these instruments as per RBI guideline?

Q: Answer-Banks, excluding RRBs, can raise funds through which of these instruments as per RBI guideline?

Certificates of Deposit CDs is a negotiable money market instrument and issued in dematerialised form or as a Usance Promissory Note, to raise short term funds by bank or other eligible financial institution. Kindly note , at the time of this exam, the RRBs were not allowed to raise money through CDs however since then, CDs can now be issued by scheduled commercial banks, Small Finance Banks and Regional Rural Banks and select All-India Financial Institutions that have been permitted by RBI to raise short-term resources within the umbrella limit fixed by RBI