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
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 before the last six months of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
- 1 Electronic Soil
- 2 RBI Issues Norms on Dividend Declaration by Banks
- 3 SEBI Proposes T+0 and Instant Settlement Cycle
- 4 SEBI amends Rules for Zero Coupon Zero Principle Instruments
- 5 RBI expands the Scope of COFT
- 6 Payments Infrastructure Development Fund Scheme
- 7 Surrender Value in Insurance
- 8 Securities Appellate Tribunal
- 9 Centre Extends PLI Scheme for Auto Sector
- 10 Interest Equalisation Scheme on Pre- and Post-Shipment Rupee Export Credit
- 11 Centre Promoting India as a global MICE Destination
