The Reserve Bank of India (RBI) recently issued guidelines for receiving "green deposits", kicked in from June 1 2023, by banks and non-banking financial companies (NBFCs). In this context what is the meaning of "green deposits"?
Answer & explanation
Correct answer: option 1
In a move to promote sustainability and address climate change, the Reserve Bank of India (RBI) recently issued guidelines for receiving "green deposits", kicked in from June 1 2023, by banks and non-banking financial companies (NBFCs). These green deposits aim to finance renewable energy, green transport, and green building projects.
Green deposits are a financial product that enables individuals and organizations to deposit their funds with banks and NBFCs, specifically to finance environmental-friendly activities and projects. These deposits serve as a means to mobilize resources and direct them towards sustainable initiatives.