Finance · Financial Markets
A highly-rated Non-Banking Financial Company (NBFC) in India decides to raise short-term, unsecured funds directly from the market for its working capital needs. It issues a debt instrument with a maturity of 90 days. Which money market instrument is the NBFC most likely using, and what is the minimum investment size as per current RBI guidelines?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Short-term Loan from Financial Institution; No minimum size as it is a negotiated facility.
- 2Treasury Bill (T-Bill); Minimum investment is ₹25,000
- 3Commercial Paper (CP); Minimum investment is ₹5,00,000✓
- 4Certificate of Deposit (CD); Minimum investment is ₹10,00,000
Correct answer
Commercial Paper (CP); Minimum investment is ₹5,00,000
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