SBI’s New Green Rupee Term-Deposit Scheme: A Step Towards Climate-Friendly Projects

Introduction

The State Bank of India (SBI), the country’s largest lender, has launched the SBI Green Rupee Term Deposit (SGRTD). This initiative aims to mobilize funds to support environmentally friendly initiatives and projects, fostering the growth of a green finance ecosystem in India.

About the Scheme

According to an SBI spokesperson, the interest rate on SBI Green Rupee Term Deposit (SGRTD) will be 10 bps lower than the card rate for the general public. The green deposits can only be valued in Indian Rupees. There is no restriction on premature withdrawal of green deposits, however, the REs will adhere to the extant guidelines. Banks are allowed to offer overdraft facility to customers against Green Deposits subject to the instructions contained in the Consolidated Circular on Opening of Current Accounts and CC/OD Accounts by Banks. The deposits raised under the framework are covered by DICGC in accordance with the Deposit Insurance and Credit Guarantee Corporation Act, 1961 and the regulations framed thereunder, as amended from time to time. <br> And here’s how you can avail the SBI Green Rupee Term Deposit (SGRTD) scheme:

1. Eligibility: The scheme is open to resident individuals, non-individuals, and non-resident Indians.
2. Tenor Options: The scheme offers tenors of 1,111 days, 1,777 days, and 2,222 days.
3. Interest Rate: The interest rate on the SGRTD will be 10 basis points lower than the card rate for the general public.
4. Application: Currently, the scheme is available through the branch network. It will soon be made available through other digital channels such as YONO and Internet Banking Services (INB).
5. Loan Facility: The bank also offers a loan or overdraft facility against the deposit.
6. Premature Withdrawal: The scheme allows for premature withdrawal of deposits.

Please note that conversion from existing term deposit to SGRTD and vice versa

Impact on the Environment

The funds raised through this scheme will be allocated towards environmentally friendly initiatives and projects. This aligns with the Reserve Bank of India’s framework for Green Deposits.

Conclusion

The launch of the SBI Green Rupee Term Deposit is a significant step towards promoting environmentally friendly initiatives and developing a green finance ecosystem in the country. It not only provides an investm