India CP & CD market — commercial paper & certificates of deposit
Quick answerIndia’s two main short-term debt instruments are
Commercial Paper (CP), issued by companies and NBFCs (around
Rs 4.5 lakh crore outstanding, recent rates ~
6.6%), and
Certificates of Deposit (CD), issued by banks (around
Rs 5.0 lakh crore outstanding, recent rates ~
6.8%). Both are discounted money-market paper with tenors from 7 days to 1 year. CP is corporate borrowing; CDs are bank liabilities. These are approximate recent values; see the
RBI Bulletin for exact figures.
The chart above is a visual summary; the tables below carry the same figures so they are readable without JavaScript — for accessibility and AI answer engines.
Approximate outstanding & rates (recent)
| Instrument | Outstanding | Typical rate |
| Commercial Paper (CP) | ~Rs 4.5 lakh cr | ~6.6% |
| Certificates of Deposit (CD) | ~Rs 5.0 lakh cr | ~6.8% |
CP vs CD at a glance
| Instrument | Issued by | Main investors | Tenor |
| Commercial Paper (CP) | Companies, NBFCs & large corporates | Mutual funds, banks, FIs | 7 days to 1 year |
| Certificates of Deposit (CD) | Banks & select FIs | Mutual funds, corporates | 7 days to 1 year (FIs up to 3 yrs) |
Approximate recent outstanding amounts and indicative rates based on RBI Bulletin money-market data; figures are rounded and the exact, latest values are published by the RBI. Rates shown are indicative of 3-month paper and vary with issuer credit quality and liquidity conditions.
What it means for bankers
CP and CD are the corporate and bank ends of the same short-term funding market, and their rates are a fast read on liquidity. CD issuance tends to spike when credit growth outpaces deposit growth and banks need bulk funds, so it is a useful early-warning gauge of deposit pressure. CP rates reveal how cheaply NBFCs and corporates can borrow versus comparable Treasury bills, and widen when credit risk or liquidity stress builds. Both instruments price off the LAF liquidity stance and the repo rate, and sit on the short end of the G-sec yield curve alongside the call money rate.
CP & CD market FAQ
What is Commercial Paper (CP)?
Commercial Paper is an unsecured, short-term promissory note issued at a discount by large, creditworthy companies, NBFCs and financial institutions to raise working capital. Tenors run from 7 days to 1 year. India's CP outstanding is of the order of Rs 4.5 lakh crore, with 3-month rates recently around 6.6%. CP is bought mainly by mutual funds and banks.
What is a Certificate of Deposit (CD)?
A Certificate of Deposit is a short-term, negotiable instrument issued by banks (and select FIs) to raise bulk deposits, usually at a discount. Bank CDs run from 7 days to 1 year. India's CD outstanding is of the order of Rs 5.0 lakh crore, with rates recently around 6.8%. Banks lean on CDs when deposit growth lags credit growth.
What is the difference between CP and CD?
Both are short-term, discounted money-market instruments, but a CD is issued by a bank to raise funds, while CP is issued by a company, NBFC or FI. CD rates track banks' marginal deposit costs; CP rates reflect issuer credit quality and the spread over Treasury bills. CDs are bank liabilities; CP is corporate borrowing.
Why do CP and CD rates matter?
They are a real-time gauge of short-term funding costs and system liquidity. When liquidity is tight, CP/CD rates rise above the repo rate; when the system is flush, they ease toward the LAF corridor floor. A surge in CD issuance signals banks scrambling for funds as credit outpaces deposits, while rising CP rates can flag stress for market-funded NBFCs.
Methodology & sources: see how BankPulse dashboards are sourced, verified & updated · machine-readable CP/CD JSON feed.
Source: RBI Bulletin money-market data on Commercial Paper (CP) and Certificates of Deposit (CD),
rbi.org.in. Outstanding amounts and rates are approximate recent values and are rounded; for exact, latest figures see the RBI Bulletin. We never reproduce RBI text verbatim. under the editorial review of
Vikram Jain. Last updated 19 Jun 2026, 01:19 IST.