FORMAT OF CDs :

Banks/FIs should issue CDs only in the dematerialised form. However, according to the Depositories Act, 1996, investors have the option to seek certificate in physical form. Accordingly, if the investor insists on physical certificate, the bank/FI may inform to Chief General Manager, Financial Markets Regulation Departement, Reserve Bank of India about such instances separately. Further, issuance of CD will attract stamp duty. There will be no grace period for repayment of CDs. If the maturity date happens to be holiday, the issuing bank should make payment on the immediate preceding working day. Banks/FIs may, therefore, so fix the period of deposit that the maturity date does not coincide with a holiday to avoid loss of discount / interest rate.