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GK MCQs Section
Q. What is the minimum maturity period for CDs by scheduled commercial banks?
Answer: 7 days
Notes: RBI guidelines state certificates of deposit by scheduled commercial banks must have a minimum maturity of 7 days. The maximum permitted maturity is 1 year for banks. CDs were introduced in India in 1989 to provide liquidity. Financial institutions can issue CDs with tenures up to 3 years, but banks cannot issue for less than 7 days.
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