A document written by a bank or other financial institution that is evidence of a deposit, with the issuer’s promise to return the deposit plus earnings at a specified interest rate within a specified time period.

CDs can be issued by scheduled commercial banks (excluding Regional Rural Banks). Select Financial Institutions (FIs) that have been permitted to raise short-term resources under umbrella limit fixed by RBI, can issue CDs within the umbrella limit fixed by RBI.

CDs can be issued to individuals (other than minors), corporations, banks, companies, trusts, funds, associations, etc. Non-Resident Indians (NRIs) may also subscribe to CDs. CD should be issued in denomination of Rs. 1 Lakh (1 unit) of Maturity Value (MV)/Face Value (FV). The minimum marketable lot for a CD, whether in physical or demat form will be Rs. 1 Lakh and in multiples of Rs. 1 lakh. Banks can issue CD for a period not less than 15 days and not exceeding one year from the date of issue.