RBI framework for green deposits out

The Reserve Bank of India (RBI) has put in place a framework for accepting green deposits, the central bank said in a notification on Tuesday. The framework will come into effect from June 1.The framework applies to banks, small finance banks, and deposit taking non-banking financial companies.

It aims to encourage lenders to offer green deposits to customers, protect interest of the depositors, aid customers to achieve their sustainability agenda, address green washing concerns and help augment the flow of credit to green activities. The framework comes at a time when environmental, social, and governance norms have gained focus in India.

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