SBI Launches Green Rupee Term Deposit (SGRTD): 10 Key Features

The country’s largest bank, State Bank of India (SBI) has launched a special fixed deposit scheme known as SBI Green Rupee Term Deposit (SGRTD). The initiative aims to raise dedicated funds to support eco-friendly projects while contributing to the development of the green finance ecosystem in India. The launch is in line with the government’s ambitious target of achieving net carbon neutrality by 2070.

1) Eligibility:

  • Open to resident individuals, non-individuals and NRI customers.

2) Tenant:

  • Flexibility to choose from three different periods: 1111 days, 1777 days and 2222 days.

3) Investment Channel:

  • Initially available through branches, with plans to expand availability through digital channels such as YONO and Internet Banking services (INB).

4) Interest Rates:

  • SGRTD offers interest rates up to 10 basis points (bps) lower than the card rate for both retail and wholesale deposits depending on the respective tenure.

5) Interest Rates (Retail Deposit):

  • 1111 days: 6.65%
  • 1777 days: 6.65%
  • 2222 days: 6.40%

6) Interest Rates (Wholesale Deposit):

  • 1111 days: 6.15%
  • 1777 days: 6.15%
  • 2222 days: 5.90%

7) Additional benefits for senior citizens:

  • Senior Citizens/Employees/Employees Senior citizens are eligible for an additional interest rate over the public rate.

8) Premature Withdrawal:

  • Premature withdrawal allowed.

9) Maturity Instructions:

  • Follows the standard guidelines applicable for Fixed Deposits/Special Fixed Deposits.

10) Loan Facility and TDS:

  • Loan/overdraft facility is available on deposits, and TDS is applicable as per income tax rules.

What is green deposit?

  • Green deposits refer to interest-bearing deposits received by regulated entities (REs) for a fixed period, with the proceeds earmarked for allocation to green finance, as per the RBI notification dated April 11, 2023.

RBI clarification on green deposits

  • Green deposits come under the Deposit Insurance and Credit Guarantee Corporation (DICGC).

Important questions related to exam

  1. Who is eligible for SBI Green Rupee Term Deposit (SGRTD)?
  2. What are the three periods proposed by SGRTD?
  3. How can one invest in SGRTD?
  4. What additional benefits do senior citizens get under SGRTD, and is premature withdrawal allowed?

Please share your feedback in the comments section.

SBI launches Green Rupee Term Deposit (SGRTD): 10 highlights_40.1

Leave a Comment