The corporations issuing commercial papers are doing so typically in order to financing of payroll, accounts payable, inventories, and meeting other short-term liabilities. Usually the maturity periods of the Commercial paper varies from one to six months. The commercial paper is one of the preferred choices of many individual investors as it offers higher return in a short period of time with considerable risk. This paper analyzed the commercial paper traded in India in regard to its traded price, volume and number of trade, Yield to maturity and real return by using standard deviation, co-efficient of variation. To know the relationship between variables relating to commercial paper namely yield to maturity, number and volume of trade, price traded with monetary policy rates correlations applied. The commercial paper has lower risk since its standard deviation is less and coefficient of variation is lower than the accepted norms of risk level.