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RBI Updates Master Direction on Commercial Paper and Non-Convertible Debentures.

Banking & Finance | Dated: 03/Jan/2026

The Reserve Bank of India (RBI) has issued an updated "Master Direction on Commercial Paper and Non-Convertible Debentures of original or initial maturity up to one year". The new norms aim to streamline the regulations for short-term debt instruments and enhance transparency in the money market.

🎯 Key Highlights:

  • Issuers must now disclose the end-use of funds raised through these instruments.
  • The minimum denomination for Commercial Papers (CPs) remains at Rs 5 Lakh.
  • Non-Convertible Debentures (NCDs) with a maturity of less than one year must be issued in dematerialized form only.

💡 Other Important Facts:

  • Direction: Commercial Paper & NCDs.
  • Minimum Denomination: Rs 5 Lakh.
  • Requirement: Demat form issuance.

📚 Test Your Knowledge:

According to RBI's Master Direction, what is the minimum denomination for issuing Commercial Papers (CPs)?

Correct Answer: Rs 5 Lakh

🚀 Quick Recap:

About RBI

  • Governor – Shaktikanta Das
  • Headquarters – Mumbai