The State Bank of India (SBI) has launched a new deposit scheme called the SBI Green Deposit Scheme.
The money collected under this scheme will be used by the bank to provide loans for green or eco-friendly projects.
Deposits can be made online or offline, and customers can also invest using the SBI Yono app.
Minimum Investment Starts at ₹1,000
The scheme is open to resident individuals, non-individual customers, and NRIs. For NRIs, the scheme is available under both NRE and NRO deposits.
The minimum deposit amount is ₹1,000, and there is no upper limit on how much you can invest.
Deposit Tenure and Withdrawal Options
You can invest in this scheme for 1111 days, 1777 days, or 2222 days. If needed, you can withdraw the money before maturity, and the regular SBI deposit rules will apply.
The scheme also offers overdraft and demand loan facilities against the deposit.
You can nominate a person under this scheme, and TDS (Tax Deducted at Source) rules will apply just like in other term deposits.
RBI Guidelines Behind the Scheme
Experts say that the RBI issued guidelines for green deposits on April 11, 2023.
As per these rules, banks can only use the funds collected through this scheme to finance eco-friendly projects.
This move is expected to encourage more green initiatives by ensuring easier access to funding.
From an environmental perspective, this is seen as a big step forward. SBI, being the largest government bank in the country, is leading the way.
Interest Rates – Up to 7.4% Per Year
For a deposit of 1111 days:
General public earns 6.65% interest
Senior citizens get 7.15% interest
For a deposit of 2222 days:
General public earns 6.4% interest
Senior citizens get 7.4% interest.
