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- State Bank of India has launched Green Rupee Term Deposit.
- Green Rupee Term Deposit of 1,111 days, 1,777 days, and 2.222 days tenor have been launched by the State Bank of India (SBI).
- These have been launched for resident individuals, non-individuals, and NRI customers.
- The deposit aims at mobilizing funds to support environment-friendly initiatives and projects.
- Presently, the deposit scheme is available through the branch network.
- It will soon be made available on YONO and Internet Banking services.
- RBI’s “Framework for acceptance of Green Deposits” prohibits banks from offering a differential interest rate on green deposits.
- However, it allows them to offer overdraft facilities to customers against Green Deposits.
- Green deposits are interest-bearing deposits. They are received by the regulated entities for a fixed period.
- The proceeds of green deposits are earmarked for being allocated towards green finance according to RBI’s notification dated 11 April 2023.
- As per the current framework, green deposits can be denominated in Indian Rupees only. They cannot be denominated in foreign currency.
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