1. About SBI Green Rupee Term Deposit:

- The State Bank of India, the country's largest public sector bank, has introduced a new fixed deposit scheme called the SBI Green Rupee Term Deposit (SGRTD).

- The scheme aims to promote the development of green finance in India by supporting eco-friendly projects.

- The initiative aligns with India's ambitious goal of achieving net carbon neutrality by 2070.

- Both resident individuals, non-residential individuals, and NRI customers can invest in this scheme.

2. Accessibility of SGRTD:

- To begin with, the SGRTD will be available through SBI branches.

- Future prospects include potentially extending its availability through digital avenues such as YONO and Internet Banking Services (INB).

3. Overview of Interest Rates and Other Features:

- The offered interest rates on this deposit are 10 basis points (bps) below the card rate for both retail and bulk deposits based on the respective tenor.

- Interest rates for retail deposits are 6.65% for 1111 & 1777 days and 6.40% for 2222 days.

- Bulk deposits return 6.15% for 1111 & 1777 days and 5.90% for 2222 days.

- Senior Citizens and bank employees are eligible for an additional interest rate over the standard public rate.

- Premature withdrawal is permitted under the SGRTD guideline.

- The scheme follows the standard guidelines for term deposit or special term deposit.

- A loan or overdraft facility is available against the deposit and Tax Deducted at Source (TDS) is applicable as per income tax rules.

4. Importance in Current Context:

- SGRTD is a progressive stride that positions India's banking sector at the forefront of eco-conscious financing.

- The initiative will be instrumental in channelling investments towards projects that contribute to environmental sustainability.

- It is a tangible step towards attaining India's target of net carbon neutrality by 2070.

5. Gk Part:

- Green Finance is a strategy for financial investment in projects and businesses that are sustainable and environmentally friendly. Governments, financial institutions, companies, and individuals worldwide are increasingly adopting it.

- Net Carbon Neutrality means achieving a balance between the carbon dioxide released into and removed from the atmosphere.

- The State Bank of India is the largest Public Sector Bank with a 23% market share in assets, serving over 50 crore customers across India.