Lesson 5 of 7 • 21 upvotes • 9:48mins
Certificates of Deposit a) CDs are negotiable money market instrument issued in demat form or as a Usance Promissory Notes. b) CDs issued by banks should not have the maturity less than seven days and not more than one year. c) Financial Institutions are allowed to issue CDs for a period between 1 year and up to 3 years. d) CDs are like bank term deposits but unlike traditional time deposits these are freely negotiable and are often referred to as Negotiable Certificates of Deposit. e) CDs normally give a higher return than Bank term deposit. f) All scheduled banks (except RRBs and Co-operative banks) are eligible to issue CDs. g) CDs are issued in denominations of Rs. 1 Lac and in the multiples of Rs. 1 Lac thereafter. h) Discount/Coupon rate of CD is determined by the issuing bank/FI. i) Loans cannot be granted against CDs and Banks/FIs cannot buy back their own CDs before maturity Cash Management Bills (CMBs) a) Government of India, in consultation with the Reserve Bank of India, has decided to issue a new short-term instrument, known as Cash Management Bills (CMBs), to meet the temporary mismatches in the cash flow of the Government. b) The CMBs have the generic character of T-bills but are issued for maturities less than 91 days. c) Like T-bills, they are also issued at a discount and redeemed at face value at maturity. d) The tenure, notified amount and date of issue of the CMBs depends upon the temporary cash requirement of the Government.
7 lessons • 1h 10m
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Introduction of Money Market (in Hindi)
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All About Certificate of Deposits,Cash Management Bills &Repos,Reverse Repos etc (in Hindi)
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Most Important MCQ of Money MarKet Part-1 (in Hindi)
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