Inter Corporate Deposits (ICD)
ICD market is used for short term cash management of the large corporates.
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As per the RBI Guidelines, the Minimum period of ICDs is 7 days which can be extended to One year.
The ICDs are of two types:
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Fixed Rate ICD : Interest rate is fixed and remains the same.
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Floating Rate ICD: They are bechmarked to NSE's MIBORMumbai Interbank Bid and Offer rates. Calculated by the average of the interbank offer rates based on quotations at nearly 30 major banks. .
