Question

Certificate of Deposits scheme was introduced by RBI in ---

• A. June 1991
• B. August 1987
• C. September 1990
• D. July 1989

Answer 1

Answer:

D. July 1989

Certificate of Deposits (CD):

• CD are short term deposit instrument issued by bank and financial institutions to raise large amount of money.

• This scheme was introduced by RBI in July 1989 to enable the banking system to mobilise bulk deposits from the market at a competitive rate of interest.

Lending of Money:

• Term Loans : Ordinary loans issued From 1 to 30 yrs