BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Corporates
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Primary dealers (PDs)
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All-India Financial Institutions (FIs)
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All of the above
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Detailed explanation-1: -CP may be issued to and held by individuals, banking companies, other corporate bodies registered or incorporated in India and unincorporated bodies, Non-Resident Indians (NRIs) and Foreign Institutional Investors (FIIs).
Detailed explanation-2: -Corporates, primary dealers (PDs) and the All-India Financial Institutions (FIs) are eligible to issue CP.
Detailed explanation-3: -In India, commercial paper is a short-term unsecured promissory note issued by the Primary Dealers (PDs) and the All-India Financial Institutions (FIs) for a short period of 90 days to 364 days.
Detailed explanation-4: -Commercial paper is an unsecured form of promissory note that pays a fixed rate of interest. It is typically issued by large banks or corporations to cover short-term receivables and meet short-term financial obligations, such as funding for a new project.