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Green deposits

Source: IE

 Context: Reserve Bank of India issued detailed guidelines for acceptance of ‘green deposits’ by banks and NBFCs.

Framework for ‘Green Deposits’:

Definition of Green DepositInterest-bearing deposits are offered by banks and NBFCs for a fixed period, with proceeds used to promote sustainable investments in environmentally-friendly sectors
EligibilityAll scheduled commercial banks including small finance banks (excluding RRBs, LABs, and payment banks) and all deposit-taking NBFCs registered with RBI, including HFCs
DenominationIndian Rupees only
SectorsRenewable Energy, Energy Efficiency, Clean Transportation, Climate Change Adaptation, Sustainable Water and Waste Management, Green Buildings, etc.
ExclusionsProjects 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.
MonitoringGreen deposit funds are subject to independent third-party verification on an annual basis.