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

State Bank of India (SBI), the largest bank in the country, has introduced a special fixed deposit scheme known as the SBI Green Rupee Term Deposit (SGRTD). This initiative aims to gather funds dedicated to supporting environmentally-friendly projects, contributing to the development of a green finance ecosystem in India. The launch aligns with the government’s ambitious goal of achieving net carbon neutrality by 2070.

1) Eligibility:

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

2) Tenors:

  • Flexibility to choose from three distinct tenors: 1111 days, 1777 days, and 2222 days.

3) Investment Channels:

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

4) Interest Rates:

  • SGRTD offers interest rates 10 basis points (bps) below the card rate for both retail and bulk deposits based on the respective tenor.

5) Interest Rates (Retail Deposits):

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

6) Interest Rates (Bulk Deposits):

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

7) Additional Benefits for Senior Citizens:

  • Senior Citizens/ Staff/ Staff Senior Citizens eligible for an additional interest rate over the public rate.

8) Pre-mature Withdrawal:

  • Pre-mature withdrawal allowed.

9) Maturity Instructions:

  • Follows the standard guidelines applicable for term deposit/ special term deposit.

10) Loan Facility and TDS:

  • Loan/ overdraft facility available against the deposit, and TDS is applicable as per income tax rules.

What is Green Deposit?

  • Green deposit refers to an interest-bearing deposit received by regulated entities (RE) for a fixed period, with the proceeds earmarked for allocation towards green finance as per RBI’s notification dated April 11, 2023.

RBI Clarifications on Green Deposits

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

Important Questions Related to Exams

  1. Who is eligible for the SBI Green Rupee Term Deposit (SGRTD)?
  2. What are the three tenors offered by SGRTD?
  3. How can one invest in SGRTD?
  4. What additional benefit do senior citizens receive under SGRTD, and is pre-mature withdrawal allowed?

Kindly share your responses in the comment section.

SBI Launches Green Rupee Term Deposit (SGRTD): 10 Key Features_4.1