Context:
RBI, in April 2021, released a framework for accepting green deposits from lenders and encouraging green finance.
- Definition:
- A green deposit is a fixed deposit that’s used to fund environmentally friendly projects.
- Green Deposits- Interest-bearing deposits received for a fixed term by a lender with proceeds dedicated toward green finance.
- Green deposits can fund projects related to solar, wind, biomass, and hydropower energy projects, energy efficiency, clean transportation, climate change adaptation, and sustainable water and waste management.
Also Read: Green Energy
