RBI vide its Notification dated 11th April, 2023 issued to all Scheduled Commercial Banks including Small Finance Banks (excluding Regional Rural Banks, Local Area Banks and Payments Banks), All Deposit taking Non-Banking Finance Companies (NBFCs) including Housing Finance Companies (HFCs).
The Notification states:
The Reserve Bank of India has introduced a framework of rules, governing acceptance of green deposits by Banks and NBFCs including Housing Finance Companies.
Climate change has been recognised as one of the most critical challenges and globally, various efforts have been taken to reduce emissions as well as promote sustainability.
The financial sector can play a pivotal role in mobilizing resources and their allocation thereof in green activities/projects. Green finance is also progressively gaining traction in India.
Some Regulated Entities (REs) are already offering green deposits for financing green activities and projects.
This notification shall come into force with effect from 01st June, 2023.
Link of the circular: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12487&Mode=0
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