New Delhi: There are many investment avenues in India. But, as the world turns its focus towards environmental sustainability, Indian banks are stepping up their efforts to support green initiatives. State Bank of India (SBI) and Bank of Baroda are among the key players in this movement.
Both banking giants offer green fixed deposit (FD) facilities to their customers. Here we are decoding the comparison of the green FDs provided by these two prominent banks. (Also Read: Indian CEO Leaves High-Paying Microsoft Job to Pursue Passion for Farming)
Continue reading to delve deep into the further details. (Also Read: NHAI Revised Banks & NBFC List To Issue FASTags: Check New Authorized Entities Here)
What Is Green Deposits?
Green deposits are interest-bearing deposits received by regulated entities, with the funds specifically earmarked for allocation towards green finance, as per the Reserve Bank of India's notification.
The circular is dated April 11, 2023. These deposits aim to channel funds towards environmentally sustainable projects.
RBI Issued FAQs
The RBI recently released a document addressing various inquiries investors may have regarding green deposits, providing clarity and guidance on the matter.
Introduction Of SBI And BoB Green Term Deposits
Bank of Baroda has rolled out the BOB Earth Green Term Deposit Scheme, allowing both existing and new customers to open green deposits at any Bank of Baroda branch across India.
Meanwhile, the State Bank of India offers the SBI Green Rupee Term Deposit (SGRTD) through its branch network. Additionally, plans are underway to make SGRTD available through digital channels such as YONO and Internet Banking Services (INB).
SBI vs BoB Green Rupee Term Deposit: Tenors
SGRTD from SBI provides investors with flexibility, offering three distinct tenors: 1111 days, 1777 days, and 2222 days.
On the other hand, the BOB Earth Green Term Deposit Scheme introduces innovative tenures including 1 year, 1.5 years, 1111 days, 1717 days, and 2201 days.
SBI vs BoB Green Rupee Term Deposit: Interest Rates
According to information available on the SBI website, SGRTD offers interest rates 10 basis points (bps) below the card rate for retail and bulk deposits, varying based on the respective tenor.