(An Autonomous Apex Institute Established by RBI & Banks)
(An Autonomous Apex Institute Established by RBI & Banks)
Paper Number :WP28/2023
Publication Date :June 14, 2023
Access to finance is crucial to catalysing the measures needed to achieve net zero targets and a systematic transition to a low-carbon economy. Reserve Bank of India’s Framework for Acceptance of Green Deposits has provided a fillip to the development of a green finance ecosystem in India. Banks can play a key role in allocating finance to channel private investments toward the transition to a climate-resilient economy. These guidelines will help ensure that funds are utilized for the cause of sustainability. With the concerted actions by the government, regulators, Financial Institutions, corporates, and individuals to nudge towards contribution to the green finance ecosystem, the net zero goal will be more attainable. The paper provides a backdrop to the imminent climate threats, regulatory interventions, key dimensions of the green deposits framework, and its implications on stakeholders.