RBI’s Clarifications on Green Deposits

On 29th December, 2023, the Reserve Bank of India (RBI) clarified that banks and non-banking financial companies (NBFCs) are not obligated to raise green deposits but must adhere to the prescribed framework if opted.

Key Points

  • The RBI-regulated entities (REs) should pay interest on green deposits to their customers as per agreed terms and conditions and prescribed directions irrespective of allocation/utilisation of proceeds.
  • There is no restriction on premature withdrawal of green deposits.
  • Premature withdrawals will also not have any bearing on activities/projects undertaken using the proceeds of green deposits.
  • REs can temporarily park proceeds of green deposits, pending allocation towards green activities/projects, ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content

Already a Member? Login here

Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material since 2018 of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Be an Annual Subscriber

Economy Watch