Master Circular - Guidelines for Issue of Certificates of Deposit

RBI/2012-13/100
IDMD.PCD. 05/14.01.03/2012-13

July 2, 2012

The Chairmen / Chief Executives of All Scheduled Banks (excluding RRBs and LABs),
Primary Dealers (PDs) and All-India Term Lending and Refinancing Institutions

Dear Sir/Madam,

Master Circular - Guidelines for Issue of Certificates of Deposit

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.

2. A Master Circular incorporating all the existing guidelines / instructions / directives on the subject has been prepared for reference of the market participants and others concerned. It may be noted that this Master Circular consolidates and updates all the instructions / guidelines contained in the circulars listed in the Appendix  as far as they relate to guidelines for issue of CDs. This Master Circular has also been placed on RBI website at http://www.mastercirculars.rbi.org.in.

Yours faithfully,

(K. K. Vohra)
Chief General Manager