Development Financial Institutions (DFIs) have been raising deposits by issuing Certificates of Investments (COIs). Considering the issues faced by DFIs in arranging funds for lending and investment purposes and to provide them with reasonable flexibility in deposit products, it has been decided to allow all DFIs to raise deposits by issuing COIs of minimum 30 days maturity period, in addition to the existing maturity tenors.

2. The DFIs shall limit deposit from COIs of minimum 30 days maturity to the extent of 30 percent of their total deposit. Further, the DFIs shall develop business strategies for appropriate utilization of these deposits, keeping in view their short term nature.

3. The instructions contained in this Circular shall be applicable to all DFIs, except for House Building Finance Company Limited (HBFCL).

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