No longer current — replaced by Master Direction – Reserve Bank of India (Certificate of Deposit) Directions, 2021
Source: Reserve Bank of India · RBI/2004-05/440 · issued 28 Apr 2005 · ~1 min read
Quick answerRBI reduced the minimum maturity period for Certificates of Deposit from 15 days to 7 days, effective immediately. This gives banks more flexibility in short-term fund management and allows investors to access shorter-duration instruments.
What changed
The minimum maturity period for Certificates of Deposit (CDs) was reduced from 15 days to 7 days. This change was announced in the annual policy statement for 2005-06 and took effect immediately.
What it means for you
Banks can now issue CDs with maturities as short as 7 days, enabling finer tuning of liquidity management. This also opens up a new short-term investment avenue for corporate and institutional investors, potentially increasing demand for CDs. Lenders may see a shift in short-term deposit preferences as CDs become more competitive with other money market instruments.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update your CD issuance guidelines and systems to reflect the new 7-day minimum maturity.
Review your liquidity management strategy to leverage shorter-duration CDs for better asset-liability matching.
Communicate the change to your treasury and product teams to align with the revised regulatory framework.
Assess the impact on your short-term funding costs and investor demand for 7-day CDs.
Who it affects
Scheduled commercial banks (excluding RRBs and LABs), Treasury departments of banks, Corporate and institutional investors in money market instruments
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 20:56 IST
Superseded by — Master Direction – Reserve Bank of India (Certificate of Deposit) Directions, 2021
Status change: superseded09 Jul 2026, 04:02 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the new minimum maturity for CDs?
The minimum maturity period for Certificates of Deposit has been reduced from 15 days to 7 days, effective from April 28, 2005.
Which banks are affected by this change?
All scheduled commercial banks, excluding Regional Rural Banks (RRBs) and Local Area Banks (LABs), are covered by this circular.
Why did RBI reduce the minimum maturity?
The reduction was part of the annual policy review for 2005-06, aimed at providing greater flexibility in short-term fund management and deepening the money market.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Superseded byMaster Direction – Reserve Bank of India (Certificate of Deposit) Directions, 20
📜 Read the original circular — full text as issued by RBI
RBI/2004-05/440
Ref.No. MPD.263 /07.01.279/2004-05
April 28, 2005
Vaishakha 8, 1927 (S)
The Chairmen/Chief Executives of
All Scheduled Commercial Banks (excluding RRBs and LABs)
Dear Sirs
Certificates of Deposit
Please refer to paragraph 72 (iii) of the annual
policy Statement for the year 2005-06 dated April 28, 2005 ( copy
of the paragraph enclosed ). On a review, the minimum maturity period of
certificates of deposit (CDs) has been reduced from 15 days to 7 days with immediate
effect.
Yours faithfully
(Deepak Mohanty)
Adviser-in-Charge
Extract from the annual policy Statement for
the year 2005-06
72 (iii) Certificates of Deposit
The minimum maturity period of certificates
of deposit (CDs) reduced from 15 days to 7 days with immediate effect.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2004-05/440 · issued 28 Apr 2005. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2229&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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