Ministry : Reserve Bank of India

Department/Board : Department of Regulation

Circular No. : DOR.SFG.REC.10/30.01.021/2023-2024

Date : 11.04.2023

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)

Madam/Dear Sir,

Framework for acceptance of Green Deposits

Climate change has been recognised as one of the most critical challenges faced by the global society and economy in the 21st century. 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.

2. Deposits constitute a major source for mobilizing of funds by the Regulated Entities (REs). It is seen that some REs are already offering green deposits for financing green activities and projects. Taking this forward and with a view to fostering and developing green finance ecosystem in the country, it has been decided to put in place the enclosed Framework for acceptance of Green Deposits for the REs.

3. The framework shall come into effect from June 1, 2023.

Yours faithfully,
(Sunil T.S. Nair)
Chief General Manager

Framework for acceptance of Green Deposits