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    Question

    What should be the minimum duration for which a

    certificate of deposit can be issued?
    A 7 days Correct Answer Incorrect Answer
    B 30 days Correct Answer Incorrect Answer
    C 45 days Correct Answer Incorrect Answer
    D 60 days Correct Answer Incorrect Answer
    E 90 days Correct Answer Incorrect Answer

    Solution

    Certificate of Deposit is a negotiable instrument issued in 1989 for the first time and it is issued against funds deposited with a bank or financial institution. The scheduled commercial banks (excluding the RRBs and the Local Area Banks) and All-India Financial Institutions can issue such CDs. The minimum amount should be Rs 1 lakh whereas the duration should not be less than 7 days and not more than a year. 

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