RBI/2008-09/24
Ref. FMD. MSRG. No. 21/02.08.003/2008-09
July 1, 2008
Ashadha 10, 1930(S)
The Chairmen/Chief Executives of
All Scheduled Banks (excluding RRBs and LABs)
and All-India Term Lending and Refinancing Institutions
Dear Sir,
Guidelines for Issue of Certificates of Deposit
As you are aware, with a view to further widening the range of money market instruments and giving investors greater flexibility in deployment of their short-term surplus funds, Certificates of Deposit (CDs) were introduced in India in 1989. Guidelines for issue of CDs are presently governed by various directives issued by the Reserve Bank of India, as amended from time to time.
A Master Circular incorporating all the existing guidelines/instructions/directives on the subject has been prepared. It may be noted that this Master Circular consolidates and updates all the instructions/guidelines contained in the circulars listed in the Appendix, in so far as they relate to ‘guidelines for issue of CDs’. This master circular has been placed on RBI website at www.mastercircular.rbi.org.in
Yours faithfully,
(Chandan Sinha)
Chief General Manager