Green deposit

    ESG & Governance

    An interest-bearing fixed deposit at a bank or NBFC whose proceeds are earmarked for green lending or investment.

    Under RBI's November 2025 Directions, green deposits are optional for banks, must be in rupees, carry DICGC insurance and can be withdrawn early. The rules do not allow a bank to pay a different interest rate on them. The bank must allocate the money to eligible activities, park any unused amount in short-term high-quality liquid assets, and publish yearly third-party verification and impact reports.

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