The State Bank of India (SBI), has launched the SBI Green Rupee Term Deposit (SGRTD), an exclusive fixed deposit initiative designed to raise funds for eco-friendly projects. This unique scheme is a strategic step towards supporting initiatives that contribute to a green finance ecosystem in India, aligning with the government’s ambitious target of attaining net carbon neutrality by 2070.
Eligibility and Varied Tenors of SGRTD
The SBI Green Rupee Term Deposit scheme is open to resident individuals, non-individuals, and NRI customers. Investors can choose from three distinct tenors: 1111 days, 1777 days, and 2222 days, offering flexibility to align with diverse financial goals.
How to Invest and Competitive Interest Rates
Currently accessible through branch networks, SGRTD will soon be available on digital channels such as YONO and Internet Banking Services. The scheme provides interest rates with a 10 basis points reduction below the card rate for both retail and bulk deposits. Interest rates for retail and bulk deposits across different tenors are as follows:
- Interest Rates for Retail Deposits:
- 1111 Days: 6.65%
- 1777 Days: 6.65%
- 2222 Days: 6.40%
- Interest Rates for Bulk Deposits:
- 1111 Days: 6.15%
- 1777 Days: 6.15%
- 2222 Days: 5.90%
Additional Benefits for Senior Citizens, Pre-mature Withdrawal, and Loan Facility
Senior citizens and staff are eligible for additional interest rates. Pre-mature withdrawal is permitted, and SGRTD offers a loan/overdraft facility against the deposit. Maturity instructions align with standard term deposits, and TDS is applicable as per income tax rules.
Understanding Green Deposit and RBI Framework
A green deposit, as per the RBI’s April 11, 2023, notification, is an interest-bearing deposit where the proceeds are earmarked for green finance. Deposits under this framework are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
SBI’s Latest FD Rates and Senior Citizen Benefits
In addition to the SGRTD launch, SBI’s latest FD rates, post a recent hike, range from 3.5% to 7% on deposits maturing in seven days to ten years. Senior citizens enjoy an additional 50 basis points on these deposits, enhancing returns for this demographic.
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