In the context of the Indian money market, which financial instrument represents a promissory note issued by scheduled commercial banks at a discount to face value?

💡 Solution & Explanation

A Certificate of Deposit is a negotiable money market instrument issued in dematerialized form or as a usance promissory note by scheduled commercial banks against funds deposited at a specified institution for a specified period. They are issued at a discount to face value and provide institutional investors with short-term liquidity management options. Other options refer to long-term debt instruments or retail savings schemes. They play a vital role in wholesale funding markets.