Total commercial paper outstanding stood at ₹6.53 lakh crore as of September 15. That is up from ₹5.27 lakh crore a year earlier.
Commercial paper is a short-term, unsecured debt instrument that companies issue to raise funds quickly, typically maturing within a year. Companies often use it to meet working capital needs or refinance existing debt.
Commercial paper outstanding
| Date | Outstanding |
|---|---|
| Mar 31, 2024 | ₹3.89 lakh crore |
| Sep 15, 2025 | ₹5.27 lakh crore |
| Mar 31, 2026 | ₹4.60 lakh crore |
| Sep 15, 2026 | ₹6.53 lakh crore |
Source: Reserve Bank of India
Issuance in the fortnight through September 15 alone stood at ₹1.85 lakh crore. That was more than double the ₹91,579 crore issued in the previous fortnight.
The increase comes amid lower short-term funding costs. The RBI cut its policy rate by a cumulative 100 basis points between April and December 2025. The banking system has since seen a sharp inflow of liquidity, with banks mobilising about $133 billion (₹12.78 lakh crore) through FCNR-B deposits after the RBI opened its concessional swap window in June.
The lower end of the discount-rate range on commercial paper dropped to 5.25% as of mid-September, down from 7.09% two years earlier.
CP Discount Rate Range: Top versus Weaker-Rated Borrowers
| Date | Top-rated (lower end of range) | Weaker-rated (upper end of range) |
|---|---|---|
| Sep 2024 | 7.09% | 12.88% |
| Sep 2025 | 5.72% | 11.97% |
| Sep 2026 | 5.25% | 12.14% |
Source: Reserve Bank of India
Recent issuances show that top-rated companies have been able to access the commercial paper market at rates close to the lower end of the current range. For instance, NTPC Ltd. issued 40-day CP at 5.60% on September 9, while Power Finance Corporation Ltd. raised 90-day paper at 5.94%.
Rates for weaker-rated borrowers, meanwhile, stayed closer to 12%.
Net new commercial paper financing to non-financial companies, however, has not kept pace with the rise in outstanding balances. Such flows totaled ₹7,948 crore in the year ended March 2026, down from ₹18,819 crore a year earlier, separate RBI data showed.
That suggests much of the recent growth reflects refinancing of maturing paper rather than fresh borrowing.