Source: IE
Context: Reserve Bank of India issued detailed guidelines for acceptance of ‘green deposits’ by banks and NBFCs.
Framework for ‘Green Deposits’:
| Information | |
| Definition of Green Deposit | Interest-bearing deposits are offered by banks and NBFCs for a fixed period, with proceeds used to promote sustainable investments in environmentally-friendly sectors |
| Eligibility | All scheduled commercial banks including small finance banks (excluding RRBs, LABs, and payment banks) and all deposit-taking NBFCs registered with RBI, including HFCs |
| Denomination | Indian Rupees only |
| Sectors | Renewable Energy, Energy Efficiency, Clean Transportation, Climate Change Adaptation, Sustainable Water and Waste Management, Green Buildings, etc. |
| Exclusions | Projects involving new or existing extraction, production and distribution of fossil fuels; Nuclear power generation; Direct waste incineration; Landfill projects; Hydropower plants larger than 25 MW, etc. |
| Monitoring | Green deposit funds are subject to independent third-party verification on an annual basis. |
