SBI Green Rupee Term Deposit: Check Interest Rate, Eligibility, And How To Invest Here

State Bank of India (SBI), the largest state-owned lender in India has launched the SBI Green Rupee Term Deposit (SGRTD) today (January 12). SBI Green Rupee Term Deposit has been launched to mobilize funds to promote eco-friendly initiatives and projects, thus fostering the growth of a green finance ecosystem in the country, SBI said.

The SBI press release says, "This innovative product underscores SBI's commitment to promoting sustainable finance and encouraging contributions towards green activities, providing opportunities for individuals and entities to support the country's vision to a sustainable future for all."

Residents, Non-Individuals, and NRI Customers are all eligible to invest in this special deposit plan.

SBI's Green Rupee Term Deposit comes after AU Small Finance Bank, in October last year, launched Planet First-AU Green Fixed Deposit in a bid to promote renewable and green projects. AU Green Fixed Deposit offers an interest rate of up to 8.50%.

Other lenders like HSBC and HDFC have also launched green deposits in India for corporates and individuals. In the last few years, the Reserve Bank of India (RBI) has been emphasizing the need for sustainable finance, thus pushing financial institutions to mobilize funds through green deposits.

The RBI's framework on green deposits states that financial institutions must raise green deposits before looking to finance green projects. There is no restriction on premature withdrawal of green deposits, however, the regulated entities shall adhere to the extant guidelines referred to above. Further, premature withdrawal would not have any bearing on the activities/ projects undertaken using the proceeds of green deposits.

SBI Green Rupee Term Deposit (SGRTD) interest rate

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.

How To Invest In SBI Green Rupee Term Deposit?

According to the SBI press release, SGRTD offers investors the flexibility to choose from three distinct tenors: 1111 days, 1777 days, and 2222 days. The scheme is available through the branch network, and it will soon be made available through other digital channels such as YONO and Internet Banking Services (INB).

Tenure available:

SGRTD offers investors the flexibility to choose from three tenors: 1,111 days, 1777 days, and 2222 days.

How to apply for SBI Green Rupee Term Deposit?

At present, the scheme is available through the branch network, and it will soon be made available through other digital channels such as YONO and Internet Banking Services (INB), the lender said.

Who can invest in SBI Green Rupee Fixed Deposit?

Residents, Non-Individuals, and NRI Customers are all eligible to invest in this special deposit plan.

Understanding Green Deposit:

A green deposit is a fixed-term deposit for those individuals who want to invest their surplus cash reserves in eco-friendly projects.

By offering this product, lenders stride towards fulfilling the government's goal of making the country net carbon zero by 2070. A green fixed deposit works the same way as regular term deposits, providing investors with a fixed interest rate over a predetermined tenure.

However, the key difference between the two lies in the utilization of the funds collected under green deposits. Unlike traditional fixed deposits, green fixed deposits prioritize investments in projects that have a positive impact on the environment.