Certificate of Deposit (CD) is a negotiable money market instrument and issued in dematerialised form or as a Usance Promissory Note against funds deposited at a bank or other eligible financial institution for a specified time period.

CDs can be issued by (i) scheduled commercial banks {excluding Regional Rural Banks and Local Area Banks}; and (ii) select All-India Financial Institutions (FIs) that have been permitted by RBI to raise short-term resources within the umbrella limit fixed by RBI.

The Reserve Bank of India’s (RBI’s) high Powered Committee onUrban Cooperative Banks (UCBs) headed by RBI Deputy Governor R Gandhi in its report has recommended conversion of UCBs with business size of 20000 crore rupees or more into regular banks.

Full form of NFS is National Financial Switch (NFS)

Note: National Financial Switch (NFS) is the largest network of shared automated teller machines (ATMs) in India. It was designed, developed and deployed by the Institute for Development and Research in Banking Technology (IDRBT) in 2004, with the goal of inter-connecting the ATMs in the country and facilitating convenience banking for the average Indian. It is run by the National Payments Corporation of India (NPCI).

Drawn on a specified banker

A promissory note is a legal instrument in which one party promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms. If the promissory note is unconditional and readily salable, it is called a negotiable instrument.

RBI has increased the limit for foreign exchange (FOREX) remittances under Liberalised Remittance Scheme (LRS) from$125,000 to $250,000 (Rs. 1.5 crore) per person per year.

Under the LRS, Indians can open, maintain and hold foreign currency accounts with banks outside India for carrying out transactions, without permission from the RBI.

Former chief economic advisor to the finance ministry Ashok Kumar Lahiri appointed as the Chairman of Bandhan Bank.

The Indian Army and Bank of India (BOI) signed a Memorandum of Understanding (MoU) pertaining to the defence salary package of the Army personnel.

Also note - State Bank of India (SBI) has signed a Memorandum of Understanding (MoU) with Indian Army on the Defence Salary Package (DSP).

The Reserve Bank of India in its third bi – monthly statement, keeps rate unchanged at Repo rate 7.25%. Reverse repo rate – 6.25%.

Under the arrangement, the Central Bank of Sri Lanka can draw up to 1.1 billion US dollar for a maximum period of six months. This special arrangement is in addition to the existing Framework on Currency Swap Arrangement for the SAARC Member Countries.\