What do you mean by certificate of deposits?
Certificate of deposit:
· It is a negotiable short term promissory note in nature.
· It is issued by commercial banks and financial institutions for subscription by the public towards meeting their fund requirements
· It is issued at a discount to the face value, the discount rate being negotiated between the issuer and the investor.
· Certificate of deposits are issued for a period of 90 days to one year
· Regional Rural Banks and Local Area Banks are not eligible to issue certificate of deposits
