State Bank of India (SBI) has launched SBI Green Rupee Term Deposit (SGRTD) to raise money for projects and activities that promote the environment and help the green financial ecosystem thrive.
Who is eligible to invest in SBI Green Rupee Term Deposit
Residents, Non-Individuals and NRI Customers are all eligible to invest in this special deposit.
What is the interest rate for SBI Green Rupee Term Deposit?
According to the SBI press release, “This innovative product underscores SBI’s commitment to promote sustainable finance and encourage contributions to green activities, providing opportunities for individuals and entities to support the country’s vision of a sustainable future for all.”
SBI Green Rupee Term Deposit (SGRTD) Details: How to invest and tenure
According to the SBI press release, SGRTD offers investors the flexibility to choose from three distinct tenors: 1111 days, 1777 days and 2222 days. The scheme is available through the branch network, and it will soon be available through other digital channels such as YONO and Internet Banking Services (INB).
All About Tax Savings
Interest rate of SBI Green Rupee Term Deposit (SGRTD).
According to SBI website, “interest rate for Special categories of Customers: Senior citizens/staff/personnel Senior Citizens are eligible for additional Interest Rate above applicable Quota for public under the Scheme. The benefit of additional interest will not be available to NRI senior. Citizens/NRI- staff.”
Retail business | wholesale | |||
Tenors | Gen. Public | Mr. Citizen | Gen. Public | Mr. Citizen |
1111 Days | 6.65% | 7.15% | 6.15% | 6.65% |
1777 Days | 6.65% | 7.15% | 6.15% | 6.65% |
2222 Days | 6.40% | 7.40% | 5.90% | 6.40% |
SBI latest FD interest rates
Tenors | Revised Rates for Public Wef 27/12/2023 | Revised Rates for Senior Citizens wef 27/12/2023 |
7 days to 45 days | 3.5 | 4 |
46 days to 179 days | 4.75 | 5.25 |
180 days to 210 days | 5.75 | 6.25 |
211 days to less than 1 year | 6 | 6.5 |
1 Year to less than 2 years | 6.8 | 7.3 |
2 years to less than 3 years | 7 | 7.5 |
3 years to less than 5 years | 6.75 | 7.25 |
5 years and up to 10 years | 6.5 | 7.50* |
According to the RBI notification dated April 11, 2023, “green deposit” means an interest-bearing deposit, received from the regulated entities (RE) for a fixed period and the income of which is intended to be allocated to green finance.
REs are required to issue cumulative and non-cumulative green deposits. The depositor can choose to renew or dispose of the green deposits after maturity. The green deposits can be valued only in Indian rupees.
Early withdrawal
There is no restriction on premature disposal of green deposits, however the REs will adhere to the existing guidelines. Further, premature withdrawal would in no way affect the activities/projects undertaken using the proceeds of green deposits.
Here are more details from RBI’s FAQs on Framework for acceptance of Green Deposits issued on December 29, 2023.
Are the deposits obtained under the above framework covered by Deposit Insurance and Credit Guarantee Corporation (DICGC)?
The deposits obtained under the framework are covered by DICGC in accordance with the Deposit Insurance and Credit Guarantee Corporation Act, 1961 and the regulations framed thereunder, as amended from time to time.
Can banks allow overdrafts to customers against Green Deposits?
Banks are allowed to offer overdraft facility to customers against Green Deposits as per the instructions contained in the Consolidated Circular on Opening of Current Accounts and CC/OD Accounts of Banks dated April 19, 2022, as amended from time to time.
Can foreign banks have a single global policy on green deposits?
Foreign banks may have a common global policy on green deposits, without prejudice to the provisions of the framework for green deposits raised in India after 01 June 2023.
Can the green deposits be denominated in foreign currency?
No. The current framework allows green deposits to be denominated in Indian rupees only.
Are these deposits covered by DICGC?
Deposits made under the framework are insured by DICGC in line with the Deposit Insurance and Credit Guarantee Corporation Act of 1961, as amended from time to time.