Initially, the CP amount outstanding rose from Rs. 86 crore as at the end of financial year 1989-90 to Rs. 577 crore as at the end of the year 1992-93 (Annex I).
Following various relaxations in the terms and conditions for issue of CP viz., eligibility criteria, denomination of CP, quantum of CP that can be issued against maximum permissible bank finance (MBPF) and maturity of CP during the following years coupled with decline in discount rates, CP issuances gathered momentum thereafter and reached Rs. 7,224 crore by end-March 2002.