HDFC has launched green and sustainable deposits with an aim to safeguard the environment from climate change.
Context
HDFC has launched green and sustainable deposits with an aim to safeguard the environment from climate change.
What are Green Bonds?
- Green bonds were created to fund projects that have positive environmental and/or climate benefits.
- The majority of the green bonds issued are green “use of proceeds” or asset-linked bonds.
Green Bonds
- In 2007, green bonds were launched by few development banks such as the European Investment Bank and the World Bank.
- Subsequently, in 2013, corporates too started participating, which led to its overall growth.
- Yes Bank was the first Indian bank to come out with a issue worth Rs 1,000 crore in 2015.
- CLP India, was the first Indian company to tap this route.
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Key-highlights of the Scheme
- Eligibility: Any Indian individual, be it a resident or non-resident, is eligible to make these deposits.
- Time period: The period of deposits ranges from 36 to 120 months.
- Interest rate: The deposits fetch interest rates of up to 6.55% every year.
- Senior citizen benefits: Senior citizens (above 60 years) will be eligible for an additional 0.25% per annum interest on deposits up to ?2 crore.
- Additional return on investment of 0.10% per annum will be applicable on these deposits up to ?50 lakh per calendar month, per customer if they are placed or renewed through HDFC's online platform.
Focus of the Scheme
- These fixed deposits will be directed towards financing green and sustainable housing credit solutions and services.
- It will also empower depositors to direct their investments to financial solutions that have a positive impact on the environment and the society at large.
- Supporting India's efforts for a sustainable and green low-carbon economy.
