SBI Launches Green Rupee Term Deposit Scheme to Promote Eco-Friendly Investments
In line with the Reserve Bank of India’s (RBI) guidelines for promoting green finance, the State Bank of India (SBI) has introduced a new deposit product called the SBI Green Rupee Term Deposit (SGRTD). This initiative aims to channel customer deposits into environmentally sustainable projects across India.
In line with the Reserve Bank of India’s (RBI) guidelines for promoting green finance, the State Bank of India (SBI) has introduced a new deposit product called the SBI Green Rupee Term Deposit (SGRTD). This initiative aims to channel customer deposits into environmentally sustainable projects across India.
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RBI’s Push for Green Finance
On April 11, 2023, the RBI issued guidelines for accepting Green Deposits to help build a strong green finance ecosystem. These guidelines aim to ensure that banks mobilize funds specifically for eligible green activities and eco-friendly projects.
About the SBI Green Rupee Term Deposit
SBI’s Green Rupee Term Deposit is part of this push and is now available across SBI branches and digital channels like Internet Banking and the YONO app. The scheme enables customers to support green initiatives while earning returns on their deposits.
Who Can Apply?
The SGRTD scheme is open to a wide range of customers:
- Resident Individuals
- Non-Individual Customers
- NRIs (available under both NRO and NRE deposit accounts)
Deposit and Tenure Details
- Minimum Deposit Amount: ₹1,000
- No Upper Limit on deposit
- Available Tenures:
- 1111 days
- 1777 days
- 2222 days
The scheme is applicable for Term Deposits and Special Term Deposits only. It is not available for MOD, Tax Saving, Annuity, or Recurring Deposit accounts.
Interest Rates Offered
| Tenure | Retail Public | Senior Citizens | Bulk Deposits (Public) | Bulk Deposits (Senior Citizens) |
|---|---|---|---|---|
| 1111 Days | 6.65% | 7.15% | 6.40% | 6.90% |
| 1777 Days | 6.65% | 7.15% | 6.40% | 6.90% |
| 2222 Days | 6.40% | 7.40% | 6.15% | 6.65% |
Additional Features and Flexibility
- Premature Withdrawal: Allowed as per standard time deposit rules
- Loan Facility: Overdraft and demand loan options are available
- Nomination: Facility is available for all eligible accounts
- TDS: Deducted as per applicable Income Tax laws; customers may submit Form 15G/15H to avoid deduction
- Account Transfer: Accounts can be moved across SBI branches nationwide
Encouraging Sustainable Investment
With the SGRTD, SBI hopes to encourage Indian depositors to contribute towards the green transition by supporting initiatives like renewable energy, clean transportation, and sustainable water management.
Disclaimer: Investment decisions should be made after consulting certified financial experts. Views expressed are those of industry experts and not of the publishing platform.
