State Bank of India (SBI) on Friday launched a green rupee term deposit scheme with an aim to finance environment-friendly projects. Through the launch, the bank aims to foster the growth of a green finance ecosystem in India, a press release said.
This deposit scheme is open to resident individuals, non-individuals, and non-resident Indian customers. The green rupee term deposit offers investors the flexibility to choose from three distinct tenures: 1,111 days, 1,777 days, and 2,222 days.
Currently, the scheme is available through the branch network, and it will soon be made available through other digital channels like YONO and internet banking services. “By offering this innovative product, we stride towards fulfilling the ambitious goal of the Government of India of making our nation net carbon zero by 2070, fostering a greener and environmentally responsible financial future for all,” SBI chairman Dinesh Khara said.
In April, the RBI issued the framework for banks’ acceptance of green deposits. The framework was launched with an aim to protect interest of depositors, aid customers to achieve their sustainability agenda, address green-washing concerns and help augment the flow of credit to green activities.