GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Certificate of Deposit can be issued by ____?
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Reserve Bank, NABARD and Exim Bank only
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Commercial banks and term lending institutions
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Scheduled commercial banks excluding regional rural banks
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All of the above
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Explanation:
Detailed explanation-1: -A CD can be issued by any All-India Financial Institution or Scheduled Commercial Bank.
Detailed explanation-2: -CDs shall be issued only in dematerialised form and held with a depository registered with Securities and Exchange Board of India. CDs shall be issued in minimum denomination of ₹5 lakh and in multiples of ₹5 lakh thereafter. The tenor of a CD at issuance shall not be less than seven days and shall not exceed one year.
Detailed explanation-3: -The Certificate of Deposit (CD) is an agreement between a depositor and an authorised bank or financial institution. Depositors invest a certain amount for a pre-decided tenure, while banks and financial institutions pay an interest on the invested amount.
There is 1 question to complete.