Question

The scheme introduced by RBI, to enable the banking system to mobilise bulk deposits from the market, at a competitive rate of interest

• A. Fixed Deposit Scheme
• B. Recurring Deposit Scheme
• C. Certificate of Deposits Scheme
• D. Gold Deposit Scheme

Answer 1

Answer:

C. Certificate of Deposits Scheme

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