State Bank of India (SBI) has launched the SBI Green Rupee Term Deposit (SGRTD) of 1,111 days, 1,777 days, and 2.222 days tenor for resident individuals, non-individuals, and NRI customers.

The deposit has been introduced with the aim of mobilising funds to support environment-friendly initiatives and projects, thereby fostering the growth of a green finance ecosystem in India, India’s largest bank said in a statement.

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), it added.

As RBI’s “Framework for acceptance of Green Deposits”, Banks are not permittedto offer a differential rate of interest on green deposits. However, they are allowed to offer overdraft facilities to customers against Green Deposits.

Dinesh Khara, Chairman, SBI, said, this innovative product underscores the Bank’s commitment to promoting sustainable finance and encouraging contributions towards green activities, providing opportunities for individuals and entities to support the country’s vision for a sustainable future for all.