The Reserve Bank of India, on Wedesday, said it will issue guidelines on broad framework for acceptance of Green Deposits, disclosure framework on Climate-related Financial Risks, and guidance on Climate Scenario Analysis and Stress Testing.

The central bank will issue the guidelines, which will be based on feedback received on its Discussion Paper (DP) on Climate Risk and Sustainable Finance, in a phased manner.

Climate-related risks refer to the potential risks that may arise from climate change or from efforts to mitigate climate change, their related impact and the economic and financial consequences.

It can impact the financial sector through two broad channels -- physical risks and transition risks, per the DP.

Bing a full-service central bank with financial stability as part of its mandate, the Reserve Bank recognises that climate change can translate into climate-related financial risks for Regulated Entities (REs), which can have broader financial stability implications, RBI said. 

Further, the Reserve Bank will have a dedicated webpage on its website which will consolidate all instructions, press releases, publications, speeches and related RBI communication on climate risk and sustainable finance.

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