Master Direction – Reserve Bank of India (Certificate of Deposit) Directions, 2021 Flashcards
Interest rates administered by Financial Benchmark Administrators are known as ………………….
Benchmark Interest Rates
“Certificate of Deposit” or “CD” is a……………….. , ……………………..issued by a bank as a ………………….. against funds deposited at the bank for a maturity period up to…………….
Negotiable, unsecured money market instrument, Usance Promissory Note, one year
“…………………………………” means a settlement mechanism which stipulates that transfer of funds from the buyer of securities is made simultaneously with the transfer of securities by the seller of securities.
Delivery versus Payment (DvP)
who are eligible to issue Certificate Deposits?
Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks. AIFI can also issue after necessary approvals from RBI.
who are eligible to invest in Certificate Deposits?
All persons resident in India
“Depository” shall have the meaning assigned in section 2 (e) of the …………… Act.
Depositories Act, 1996
CDs should be issued only in …………………. form and of minimum value of ………… and in multiples ………….. of thereof.
Dematerialized, 5 lakhs, 5 Lakhs.
Tenor of CDs shall be ?
7 Days to One Year
Loan against CDs?
Not allowed unless permitted by RBI
Buybacks of CDs?
only after 7 days of issuance
Primary Issuance/ Buybacks of CDs shall be reported on which platform and up to what time?
It should be reported by issuer to Trade Repository i.e. F-TRAC - Financial Market Trade Reporting and Confirmation Platform of the Clearing Corporation of India Ltd. (CCIL) by 5:30 PM on the day of Issuance/ Buyback.
Reporting of transactions in CDs in Secondary Market?
within 15 minutes of transaction
Reporting by Depositories to RBI?
15th and Last day of the month
