SBI discusses with RBI to lower CRR on green deposits for enhanced funds for climate-friendly projects.
State Bank of India (SBI) Chairman Dinesh Khara has revealed discussions with the Reserve Bank of India (RBI) to potentially reduce the cash reserve ratio (CRR) requirement on green deposits. SBI introduced a green deposit scheme last month to attract long-term retail deposits for funding climate-friendly projects, offering rates 10 basis points lower than normal deposit rates. The current CRR is at 4.5%, and a reduction could allow SBI to lower pricing on green deposits. The bank is also working with rating entities to establish an accounting standard for green financing, and currently evaluates borrowers on environmental, social, and governance (ESG) ratings.
February 16, 2024
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