Certificate of Deposit (CoD) is a short-term unsecured, negotiable instrument issued by commercial banks and special financial institutions (SFIs) to individuals, co-operatives and companies.
It is a promissory note in the form of certificate entitling the bearer to receive interest.
The maturity period of Certificate of Deposit ranges from 9 days to 1 year. The holders can withdraw funds on demand only after the payment of certain penalty.
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