The Reserve Bank of India (RBI) on April 11 released a set of guidelines regarding Framework for acceptance of Green Deposits.
Following those guidelines, State Bank of India (SBI) released a new deposit scheme — SBI Green Rupee Term Deposit — in a bid to mobilise deposits to support the bank in financing green initiatives.
These deposits are offered for three durations which are 1111 days, 1777 days and 2222 days.
Key features of SBI Green Rupee Term Deposit:
Who are eligible customers?
The eligible customers include resident individuals, non-individual and NRIs.
Amount of deposit: The minimum deposit is ₹1,000 while there is no maximum limit.
Tenor: As mentioned above, there are three tenors i.e., 1111 days, 1777 days and 2222 days.
What is the rate of interest?
The rate of interest offered on green deposits depends on the loan’s tenor:
On a tenor of 1111 days, there is 6.65 percent for the general public and 7.15 percent for senior citizens.
On a tenor of 1777 days, there is 6.65 percent for the general public and 7.15 percent for senior citizens.
On a tenor of 2222 days, there is 6.40 percent for the general public and 7.4 percent for senior citizens.
Are they eligible for premature withdrawal?
These deposits are applicable for premature withdrawal of normal time deposits.
Can you take a loan against these deposits?
These deposits are eligible for loan as well.
Are they eligible for nomination?
Green deposits are eligible for nomination as well.
Is TDS also applicable?
Tax deducted at source (TDS) is applicable as per Income Tax Rules. Customers may submit Form 15G/ 15H as per rules for non-deduction of TDS.
The green deposit account can be transferred to branches of SBI across India.
Is conversion from term deposit to green term deposits allowed?
No, the conversion from existing term deposit to SBI Green Rupee Term Deposit and vice – versa is not allowed.
