Question

What are inter-corporate deposits (ICDs)?

Answer 1

Inter-Corporate Deposits (ICDs) are short-term loans that one company gives to another company for a fixed period and interest rate.

Answer 2

Inter-corporate deposits refer to funds deposited by one company into another. These deposits are usually unsecured and are offered only to companies with a good reputation. They are considered convenient because they involve minimal formalities. The interest rate on such deposits is generally lower than that charged by banks. Typically, these deposits are arranged through personal contacts or brokers.