SBI Green Rupee Term Deposit Scheme: Know 11 Important Points

Introduction:

In a strategic move towards fostering environmental sustainability and contributing to India's commitment to achieving net carbon neutrality by 2070, the State Bank of India (SBI) has unveiled the SBI Green Rupee Term Deposit (SGRTD). This innovative deposit scheme aims to channel funds towards green initiatives, supporting environmentally-friendly projects and cultivating a robust green finance ecosystem in the country.

What is the SBI Green Rupee Term Deposit?

The SBI Green Rupee Term Deposit is a specialized fixed deposit scheme crafted to mobilize funds exclusively for supporting green projects. Aligned with the Indian government's ambitious goal of achieving net carbon neutrality by 2070, the scheme is open to a wide range of investors, including resident individuals, non-individuals, and Non-Resident Indian (NRI) customers.

Who is eligible to participate in the scheme?

The SGRTD is accessible to resident individuals, non-individuals, and NRI customers, providing a broad spectrum of investors the opportunity to contribute to sustainable development.

What are the available tenors and rates for the SBI scheme?

Investors enjoy flexibility in choosing from three distinct tenors: 1111 days, 1777 days, and 2222 days. The interest rates for retail deposits stand at 6.65% for 1111 days, 6.65% for 1777 days, and 6.40% for 2222 days. Bulk deposits, while slightly lower, still offer competitive rates.

How can one invest in the SBI scheme?

Investing in the SGRTD is currently available through SBI branches, with plans to expand accessibility through digital channels like YONO and internet banking in the future. Interested individuals need to visit an SBI branch to initiate the investment process by completing the requisite forms.

Are there additional benefits for senior citizens?

Senior citizens, SBI staff, and staff senior citizens are entitled to an additional interest rate over the applicable rate for the general public, providing extra incentives for these groups.

Can investors opt for premature withdrawal from the SBI scheme?

Yes, premature withdrawal is permitted, following standard guidelines for term deposits. However, it's important to note that the interest rate applicable in such cases will be lower than the contracted rate.

What is the purpose of green deposits?

Green deposits, exemplified by SBI's SGRTD, involve interest-bearing deposits where the proceeds are earmarked for allocation towards green finance. These funds play a crucial role in supporting environmentally friendly projects, contributing to sustainable and eco-positive initiatives.

How do green deposits work?

Green deposits operate similarly to traditional fixed deposits, with investors agreeing on a deposit tenure. The key distinction lies in the directed use of funds, specifically towards environmentally friendly projects such as renewable energy, energy efficiency, pollution control, and sustainable agriculture.

What are the benefits of investing in green deposits?

Investing in green deposits offers a myriad of benefits, including the opportunity to make an eco-positive impact, diversify investment portfolios, derive ethical satisfaction from contributing to environmental causes, enjoy competitive interest rates, and foster corporate responsibility.

What is the minimum and maximum deposit amount for SGRTD?

The SGRTD welcomes a broad range of investors with a minimum deposit amount of Rs. 1,000, and there is no maximum limit, providing accessibility for investors of various financial capacities.

What is the tax treatment for SGRTD?

It's essential to note that the interest earned on SGRTD is taxable as per the provisions outlined in the Income Tax Act, 1961.

In conclusion, SBI's Green Rupee Term Deposit represents a unique investment opportunity, allowing investors to align their financial goals with eco-positive initiatives. With its competitive interest rates, broad eligibility, and diverse tenor options, the SGRTD is a significant step towards a sustainable future, echoing India's commitment to achieving net carbon neutrality by 2070.

Disclaimer

This article has been created on the basis of internal data, information available publicly, and other reliable sources to be believed. The article may also include information which are the personal views/opinions of the authors. The information included in this article is for general, educational, and awareness purposes only and is not a full disclosure of every material fact.