Magazine

Last edition
January-February 2025

Home › Policies & Regulations ›RBI Declares Guidelines to Receive Green Deposits by Banks and NBFCs

RBI Declares Guidelines to Receive Green Deposits by Banks and NBFCs

The RBI has addressed nine sectors in which the proceeds from these green bonds must be utilised.

April 13, 2023. By EI News Network

The Reserve Bank of India (RBI) has place a structure or guidelines for receiving green deposits. The guidelines will be in force from 1^st June, 2023.The structure or guidelines implements to banks, small finance banks, and deposit taking non-banking financial companies.

It targets to boost moneylenders plus financiers to avail green deposits to customers, safeguard interest of the depositors, help consumers to attain their objective of sustainability, hold forth to environmental disinformation concerns and support increase the flow of credit to green activities.

Presently, some banks such as Federal Bank, IndusInd Bank, and DBS Bank India accept green deposits.

As per the RBI’s structure, lenders and financiers will be permitted to issue green deposits as cumulative or non-cumulative basis which could be renewed or withdrawn on maturity by the depositor.

Furthermore, regulated entities (RE) is going to put an all-inclusive board-confirmed policy on green deposits settling down in that matter, all factors considered for the issuance and allocation of green deposits.

The RBI has addressed nine sectors in which the proceeds from these green bonds must be utilised.

The sectors and areas like renewable energy, energy efficiency, clean transportation, climate change adaptation, sustainable water and waste management, pollution prevention and control, green buildings, sustainable management of living natural resources and land use, and terrestrial and aquatic biodiversity conservation.

Tags:

Policies & Regulations

waste management project