IDBI Bank Ltd has launched India’s first portal to invest in IDBI’s Certificate of Deposit (CD’s). The portal is called “IDBI Samriddhi CD Portal. Anand Sinha, Deputy Governor, Reserve Bank of India was present at the launch of the portal and commended the bank’s initiative to provide a transparent and efficient platform to reach out to wider investors.
Who can use the portal: N.S Venkatesh, Chief General Manager, Treasury, told Firstpost in a telephonic interview, “This portal will provide an online platform to both retail as well as corporate entities to invest in IDBI CD’s. This portal provides the much needed infrastructure especially for retails investors to invest in CDs on the go with out constrain of time and space.” Moreover, even Non Resident Indians can buy these CD’s via the portal online on a non-repatriation basis.
What you need: As long as you have an active internet connection, a demat account, you would be able to invest in the CDs via the online portal. Venkatesh says, “The investor need not be an IDBI bank customer. Even if he has a demat account with another organization, he would be able to us the IDBI Samriddhi CD portal.”
Currently: IDBI CD’s have a minimum investment amount of Rs1 lakh and thereafter you could invest in them in multiples of Rs1 lakh. The maximum amount restricted for retail investors is Rs 5 crore. These CD’s do not come with a lock in period. You wont need pay any Tax Deducted at Source (TDS), however keep in mind that this a market liked financial instrument. Currently, the CD offers 8.70 % rate of interest, while a three month Fixed Deposit with IDBI bank for a tenor of three month currently offer 8% as rate of interest.
You do not have to pay any charges to use the portal.