AU Small Finance Bank (AU SFB), India’s leading Small Finance Bank, is delighted to announce the launch of its inaugural Green Fixed Deposit (FD) known as Planet First – AU Green Fixed Deposit. This innovative financial product has been meticulously crafted to direct its entire proceeds towards bolstering renewable and environmentally friendly initiatives, such as solar power generation and electric mobility solutions. AU SFB stands at the forefront, uniquely poised to make a significant contribution to fostering positive change by progressively offering such retail products in alignment with regulatory directives and promoting sustainability.
The Green Deposit policy and framework represent another essential component of AU SFB’s commitment to climate action. These guidelines have received formal approval from the Board and undergo external assessments conducted by a third party, in strict adherence to mandatory regulations. By directing funds through eco-friendly channels and extending loans to support green initiatives, AU SFB’s sustainability endeavours will continually progress, embodying the spirit of ‘Badlaav’ in our ongoing journey towards ‘Forever’.
Introducing the Planet First – AU Green Fixed Deposit, presenting an appealing interest rate reaching up to 8.50 per cent, requiring a minimum investment of just ₹5,000. This innovative opportunity enables both existing and new customers of AU Small Finance Bank to effortlessly secure their Green Fixed Deposit via Video Banking, the AU 0101 App, NetBanking, or by visiting their nearest AU Small Finance Bank branch. The Green Fixed Deposit will be unveiled on the final Wednesday of October, a day synonymous with Sustainability Day.
Customers have the flexibility to choose a tenure that aligns with their financial goals, ranging from as short as two years to longer-term options. The Planet First – AU Green Fixed Deposit offers a range of interest payment options, including monthly, quarterly, and cumulative (at maturity), to help customers effectively manage their cash flow. Additionally, customers will receive regular updates on how their funds are being used and the progress of the green projects supported by the Planet First – AU Green Fixed Deposit, ensuring they are well informed throughout the process.
Speaking on this launch, Sanjay Agarwal, Founder and MD & CEO, AU Small Finance Bank said, “Climate change has been recognized as one of the most critical challenges faced by the global society and economy in the 21st century and the Indian Government has taken a leading role in climate control change by committing to net-zero target at COP 27 (Confederation of Parties) meeting.
“RBI is among the few global regulators to introduce a green deposit framework. Recognizing the environment as a key stakeholder, we at AU, have recently enhanced our sustainability initiatives under the guidance of the Sustainability Committee of the Board and the inclusion of senior board members and executives with expertise in sustainability. Now, we are taking an even greater step forward and will be among the first few banks to launch ‘Planet First – AU Green Fixed Deposit,’ fully compliant with the new RBI framework,” he added.
“We intend to keep the planet first in our thoughts & and actions and to foster the ethos of the recent G20 initiative of One Earth, One Family and One Future. We are extremely happy to add Green Fixed Deposit to our bouquet of innovative and customer-centric products. By choosing Planet First – AU Green Fixed Deposit, one joins a community of pro-green customers, where the deposits so mobilized, shall be channelized exclusively into essential green projects (including solar power, electric mobility solutions, etc.) that support climate action,” said Agarwal.
This marks a groundbreaking achievement in the Indian banking industry, as it stands as one of the country’s leading Green Fixed Deposits introduced in compliance with the guidelines set by the Reserve Bank of India (RBI). These guidelines mandate that the funds generated are used exclusively for activities that promote energy efficiency, reduce carbon emissions and greenhouse gases, enhance climate resilience and adaptation, and protect and enhance natural ecosystems and biodiversity. These funds will be deployed across India, with a particular focus on green projects in rural Bharat.
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Updated: 27 Oct 2023, 04:39 PM IST