Question

What should be the minimum duration for which a certificate of deposit can be issued?

Q: Answer-What should be the minimum duration for which a certificate of deposit can be issued?

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.