State Bank of India (SBI) has launched SBI Green Rupee Term Deposit (SGRTD) in an effort to raise money for projects and activities that promote the environment and help India’s green finance ecosystem flourish.
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 plan.
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 encouraging contributions towards green activities, providing opportunities for individuals and entities to support country’s vision to a sustainable future for all.”
SBI Green Rupee Term Deposit (SGRTD) details: How to invest and tenure
As per 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 made available through other digital channels such as YONO and Internet Banking Services (INB).
SBI Green Rupee Term Deposit (SGRTD) interest rate
According to an SBI website, “interest Rate for Special categories of Customers: Senior Citizens/ Staff/ Staff Senior Citizens are eligible for additional Interest Rate over applicable Rate for public under the Scheme. The benefit of additional interest shall not be available to NRI Senior Citizens/NRI Staff.”
| Retail | Bulk | |||
| Tenors | Gen. Public | Sr Citizen | Gen. Public | Sr 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 w.e.f. 27/12/2023 | Revised Rates for Senior Citizen w.e.f. 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 by the regulated entities (RE) for a fixed period and the proceeds of which are earmarked for being allocated towards green finance.”
REs are required to issue cumulative and non-cumulative green deposits. The depositor can opt to have the green deposits renewed or removed upon maturity. The green deposits can only be valued in Indian Rupees.
Premature withdrawal
There is no restriction on premature withdrawal of green deposits, however, the REs will adhere to the extant guidelines. Further, premature withdrawal would not have any bearing on 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 raised under the above framework covered by Deposit Insurance and Credit Guarantee Corporation (DICGC)?
The deposits raised 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 overdraft facility to customers against Green Deposits?
Banks are allowed to offer overdraft facility to customers against Green Deposits subject to the instructions contained in the Consolidated Circular on Opening of Current Accounts and CC/OD Accounts by Banks dated April 19, 2022, as amended from time to time.
Whether foreign banks can have a single global policy on green deposits?
Foreign banks can have a common global policy on green deposits, without prejudice to the provisions of the framework for green deposits raised in India after June 01, 2023.
Can the green deposits be denominated in foreign currency?
No. The current framework permits green deposits to be denominated in Indian Rupees only.
Are these deposits covered under DICGC?
Deposits made under the framework are insured by DICGC in line with the Deposit Insurance and Credit Guarantee Corporation Act of 1961, as modified from time to time.
