SBI Green Rupee Term Deposit: A sustainable investment | Fusion - WeRIndia

In an effort to promote green finance and support India’s transition to an eco-friendly economy, the Reserve Bank of India (RBI) released guidelines in April 2023 for the acceptance of green deposits.

Aligning with this initiative, the State Bank of India (SBI) launched its Green Rupee Term Deposit (SGRTD). It is a unique fixed deposit product aimed at mobilising funds specifically for green projects.

The SGRTD is designed to attract individuals and institutions who want to contribute to environmental sustainability while earning competitive returns.

The funds raised through this scheme are exclusively allocated to environmentally beneficial initiatives such as clean energy, sustainable farming, and waste management.

The scheme is open to a wide range of customers:

• Resident individuals
• Non-individual entities
• Non-resident Indians (NRIs) through NRE and NRO deposit options

Deposit Requirements and Tenure:

Investors can start with a minimum deposit of ₹1,000, and there is no maximum limit, making it suitable for both retail and bulk investors.

The scheme offers three specially curated deposit tenures:

• 1111 days
• 1777 days
• 2222 days

SBI offers competitive interest rates under the SGRTD scheme, rewarding customers who invest in sustainability:

• For both 1111 days and 1777 days, the interest rate stands at 6.65% for the general public, and 7.15% for senior citizens.
• For the longer 2222-day tenure, general depositors earn 6.40%, while senior citizens receive a higher rate of 7.40%.

For bulk deposits, the rates vary slightly:

• 40% for the general public and 6.90% for seniors for the 1111 and 1777-day options
• 15% and 6.65% respectively for the 2222-day option

Investors enjoy standard term deposit benefits:

• Premature withdrawal is allowed under existing guidelines.
• Loan and overdraft facilities are available against the deposit.
• A nomination facility is included.
• TDS is applicable as per income tax rules, with exemptions available through Form 15G/15H.
• Deposits can be transferred across SBI branches nationwide.

Though initially launched through SBI branches, the SGRTD is expected to be available soon through digital platforms like SBI Internet Banking and the YONO app, increasing ease of access for tech-savvy customers.

The SBI Green Rupee Term Deposit is more than just a fixed deposit; it’s a chance to invest in the planet’s future while securing your own.

With stable returns, wide eligibility, and a focus on sustainability, it offers a compelling choice for investors looking to align their money with their values.

Image Credit: State Bank of India, CC BY-SA 4.0, via Wikimedia Commons

Image Reference: https://commons.wikimedia.org/wiki/File:SBI_new_logo.svg