SBI Green Rupee Term Deposit (SBI GRTD): In a significant step towards promoting environmentally sustainable initiatives, the Reserve Bank of India (RBI) unveiled guidelines on April 11, 2023, outlining the framework for accepting green deposits. The initiative aims to raise dedicated funds for financing green activities and projects, ultimately contributing to developing a strong green finance ecosystem within the country. The guidelines stipulate that funds raised under the Green Deposit Scheme can be used exclusively for financing eligible green activities and projects.
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In these instructions, the State Bank of India (SBI) has launched a new deposit scheme named “SBI Green Rupee Term Deposit” SBI GRTD. This initiative is designed to attract deposits that will support the bank in funding various green initiatives across the country.
Key Features of SBI Green Rupee Term Deposit SBI GRTD:
Eligible Customers:
The SBI Green Rupee Term Deposit (SBI GRTD) is open to a diverse range of customers, including resident individuals, non-individual entities, and NRI customers. For NRI customers, the product is available in both NRO (Non-Residential Ordinary) and NRE (Non-Residential External) deposit categories.
Deposit Amount ( INR Only):
The scheme offers flexibility in deposit amounts, with a minimum requirement of INR 1,000 and no maximum limit imposed.
Eligible Products:
The deposit applies to Term Deposits and Special Term Deposits, excluding other schemes such as MOD (Multi Option Deposit), Tax Saving, Annuity, and RD (Recurring Deposit).
Tenor Options for SBI Green Rupee Term Deposit (SBI GRTD)
Investors can choose from three tenor options:
| Tenor 1st | Tenor 2nd | Tenor 3rd |
|---|---|---|
| 1111 Days | 1777 Days | 2222 Days |
Interest Rates for SBI Green Rupee Term Deposit:
The interest rates are set at 10 basis points below the Card Rate for both retail and bulk deposits, varying according to the chosen tenor.
Present Effective Interest Rates (% p.a.)
| Tenors | Retail Gen. Public | Retail Sr Citizen | Bulk Gen. Public | Bulk Sr Citizen |
|---|---|---|---|---|
| 1111 Days | 6.65% | 7.15% | 6.15% | 6.65% |
| 1777 Days | 6.65% | 7.15% | 6.15% | 6.65% |
| 2222 Days | 6.40% | 7.40% | 5.90% | 6.40% |
Premature Withdrawal of SBI Green Rupee Term Deposit:
The pre-mature of the SBI GRTD withdrawal process follows the guidelines applicable for regular Time Deposits.
Loan Facility: Green Deposit allows customers to avail overdraft, demand loan, and other facilities.
Product Availability: Initially accessible through branch channels, the product is set to be available through the INB (Internet Banking) and YONO app shortly.
Nomination: Nomination facilities are available for eligible categories of customers.
KYC Guidelines:
KYC (Know Your Customer) guidelines apply as per the norms for Term Deposits and Special Term Deposits.
Maturity Instructions:
Maturity Instructions: Maturity instructions align with those applicable for Term Deposits and Special Term Deposits.
The maturity instructions for the SBI Green Rupee Term Deposit align with the guidelines applicable to both regular Term Deposit and Special Term Deposit accounts. This means that the procedures and conditions governing the maturity of the deposit follow the established norms for these specific types of deposits within the State Bank of India.
TDS (Tax Deducted at Source):
TDS is applicable as per Income Tax Rules. Customers have the option to submit Form 15G/15H, in adherence to rules for non-deduction of TDS.
Tax Deducted at Source (TDS) applies to the SBI Green Rupee Term Deposit by the prevailing Income Tax Rules. Customers investing in this deposit have the option to submit either Form 15G or Form 15H. These forms allow eligible customers to declare that their total income is below the taxable limit, thus qualifying for non-deduction of TDS on the interest earned from the deposit. This provides investors with the flexibility to manage their tax liabilities based on their financial circumstances.
Transfer of Account:
Transfer of Account: Account transfer is facilitated to SBI branches pan-India.
The SBI Green Rupee Term Deposit offers the convenience of account transfer to any SBI branch across India. This means that customers can seamlessly relocate their account to any State Bank of India branch nationwide, providing them with accessibility and flexibility in managing their financial portfolios. This feature enhances the customer experience and ensures that account holders can easily manage their investments and finances regardless of their geographical location within the country
Other Considerations:
The scheme allows for the conversion from existing Time Deposit Receipts (TDR) to SBI Green Rupee Term Deposit and vice versa.
This initiative aligns with the RBI’s commitment to green financing and provides an avenue for investors to contribute to environmentally sustainable projects while earning competitive returns on their deposits.
