Trends in CDs and CPs
RBI reports a lower fund mobilisation of certificates of deposit (CDs) in the primary market for the current year compared to the previous year. CDs are negotiable money market instruments issued by banks and financial institutions, typically with a maturity of not less than seven days to one year. Issuances of CDs at Rs. 1.45 lakh crore during 2023-24 till June 30, 2023, were lower than Rs.1.54 lakh crore in the corresponding period of the previous year. CDs usually provide higher returns than bank fixed deposits (FDs). The RBI bulletin provides investors with valuable information on the Indian debt market, which includes G-Secs, bonds, and CDs. It also contains information on fund mobilisation trends and yields on CDs, commercial papers (CPs), and bonds.