What is Commercial Paper?

A Commercial Paper is an unsecured money market instrument issued in the form of a promissory note

Commercial paper is an unsecured, short-term debt instrument issued by corporations.

Commercial Paper can be issued by the following entity. 1. Individuals, 2. Banking Companies, 3. Corporate Bodies  4. Non-Resident Indians (NRIs), 5. Foreign Institutional Investors (FIIs)

The Reserve Bank of India introduced the commercial paper scheme in the year 1989.

Commercial papers are issued in denominations of 5 lakhs or multiples thereof

Types of Commercial Paper 1. Promissory Notes 2. Drafts 3. Check 4. Certificate of Deposit

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