State Bank of India (SBI), the country’s largest Bank has launched a special fixed deposit (FD) scheme. SBI Green Rupee Term Deposit (SGRTD) has been launched to mobilise funds to support environment-friendly initiatives and projects, thereby fostering the growth of a green finance ecosystem in India, as per the release shared by the bank
“We are happy to launch the SBI Green Rupee Term Deposit Scheme, a testament to our commitment to sustainable finance. By offering this innovative product, we stride towards fulfilling the ambitious goal of the Government of India of making our nation net carbon zero by 2070, fostering a greener and environmentally responsible financial future for all,” said Dinesh Khara, Chairman, SBI.
Here are ten things to know about SBI Green Rupee Term Deposit (SGRTD)
1)SBI Green Rupee Term Deposit (SGRTD) Eligibility
SBI Green Rupee Term Deposit scheme is open to resident individuals, non-individuals, and NRI customers.
2)SBI Green Rupee Term Deposit (SGRTD) tenors
SGRTD offers investors the flexibility to choose from three distinct tenors: 1111 days, 1777 days, and 2222 days.
3)SBI Green Rupee Term Deposit (SGRTD): How to invest?
Currently, 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 the SBI’s website, SGRTD will offer 10 basis points (bps) interest rates below the card rate for retail and bulk Deposits for respective tenor.
4)SBI Green Rupee Term Deposit (SGRTD): Interest rate for retail deposits
1111 Days- 6.65 %
1777 Days- 6.65 %
2222 Days- 6.40 %
5)SBI Green Rupee Term Deposit (SGRTD): Interest rate for bulk deposits
1111 Days- 6.15 %
1777 Days- 6.15 %
2222 Days- 5.90 %
6)SBI Green Rupee Term Deposit (SGRTD): Additional benefit for senior citizens
Senior Citizens/ Staff/ Staff Senior Citizens are eligible for an additional interest rate over the applicable rate for the public. (NRI Senior Citizens / NRI Staff not eligible).
7)SBI Green Rupee Term Deposit (SGRTD): Pre-mature withdrawal
Pre-mature withdrawal allowed
8)SBI Green Rupee Term Deposit (SGRTD): Maturity Instructions
As applicable for term deposit/ special term deposit
9)SBI Green Rupee Term Deposit (SGRTD): Loan facility
Loan/ overdraft facility available against the deposit
10)SBI Green Rupee Term Deposit (SGRTD): TDS
TDS is applicable as per income tax rules
What is Green Deposit?
Green deposit means an interest-bearing deposit, received by the regulated entities (RE) for a fixed period the proceeds of which are earmarked for being allocated towards green finance as per RBI’s notification dated April 11, 2023.
Recently, the RBI released a document giving detailed replies to a set of queries investors may have concerning green deposits.
Are Green Deposits covered under the DICGC?
The deposits raised under the framework are covered by the Deposit Insurance and Credit Guarantee Corporation.
After the latest hike, SBI offers rates ranging from 3.5 to 7% on deposits maturing in seven days to ten years. Senior citizens will get 50 basis points (bps) extra on these deposits.
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Published: 12 Jan 2024, 03:01 PM IST