SBI launches Green deposit funds
SBI has launched an SBI Green Rupee Term Deposit [SGRTD] of the approximate tenor of 1111 days, 1,777 days, and 2,222 days for the resident individual, non-individuals, and NRI customers.
The public sector lending bank has initiated the innovative deposit mobilizing funds to support eco-friendly initiatives and projects by fostering the green financial ecosystem growth in the country’s development. Currently, the scheme is available through the branch network and will soon be made available through other digital channels such as YONO and Internet Banking Services [INB].
As per RBI’s Framework, Banks are not permitted to offer a differential rate of interest on green deposits. Yet they are allowed to offer overdraft facilities to customers against Green Deposits. As per SBI official data, the interest rate on SBI Green Rupee Term Deposit [SGRTD] will be 10 bps lower than the card rate for the general public.Read Also : THDCIL conferred with prestigious 1st Prize for ‘Advancement in Green Mobility
Green Deposit is termed as interest-bearing deposit, received by the regulated entities [RE] for a fixed period and the proceeds of which are earmarked for being allocated towards green finance. While, Res is required to issue cumulative and non-cumulative green deposits which is not having any restrictions on premature withdrawal. Depositors may opt for renewed or removed upon maturity. The green deposits can only be valued in Indian Rupees.
The Green deposits have been certified to meet the climate bonds standard, which is an internationally recognised scheme utilised to prioritised investments that genuinely contribute to address climatic change.
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The deposits are framed under the regulation of DICGC called the Deposit Insurance and Credit Guarantee Corporation Act, 1961 where the respective regulations are amended from time to time.
Furthermore, Banks are allowed to offer overdraft facilities to customers against Green Deposits subject to the instructions framed under Consolidated Circular on Opening of Current Accounts and CC/OD Accounts by Banks dated 19, April, 2022, as amended from time to time.Read Also : HPCL and Birmingham University join hands
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