RBI Issues New Framework for Green Deposits in Commercial Banks
The RBI has issued a revised framework for 'Green Deposits', mandating banks to direct these funds toward sustainable and environment-friendly projects.
2-Minute Summary (TL;DR)
- RBI issued a revised framework for Green Deposits in banks and NBFCs.
- Funds from green deposits must be used for environment-friendly projects.
- Mandates third-party verification and annual impact disclosures.
- Aims to promote sustainable finance and prevent greenwashing.
How This Topic is Tested in Competitive Exams
| Exam | Frequency | Approx. Marks | What Gets Asked |
|---|---|---|---|
| Banking (IBPS / SBI) | Very High | 6–10 | RBI policy, inflation, CRR/SLR, monetary committee decisions — banking exams test the full spectrum. |
| SSC (CGL / CHSL / MTS) | Medium | 2–4 | Budget highlights, GDP data, and government economic schemes appear in SSC CGL GK section. |
| UPSC / State PCS | High | 10–20 | Economy is a core UPSC subject. Economic Survey, budget, and policy changes are heavily tested. |
What to Memorize from This Topic
- Key budget figures: fiscal deficit %, GDP growth projection, key scheme allocations
- RBI rate decisions: Repo rate, CRR, SLR, Reverse Repo — current values
- Rankings: India's position in ease of doing business, hunger index, HDI
- Abbreviations: FRBM, NBFC, MPC, PMGSY, PMGKAY — full forms and purpose
- Trade data: import-export balance, major trading partners
Practice Questions
Q1. What are 'Green Deposits' primarily used for?
- Funding startups
- Environment-friendly projects
- Infrastructure in border areas
- Gold loans
Explanation: Green deposits are earmarked for projects with positive environmental impacts, like renewable energy.
Q2. Which practice does the RBI framework for green deposits aim to prevent?
- Money Laundering
- Greenwashing
- Insider Trading
- Hyperinflation
Explanation: The framework includes verification and disclosure norms to prevent 'greenwashing' (false claims of environmental friendliness).
How to Prepare Economy & Finance for Government Exams
Track current Repo Rate, Inflation rate, and GDP growth. These three numbers appear in almost every banking exam.
Keep a running note of new schemes with their ministry, launch date, and target beneficiary group.
Focus on the Economic Survey and Union Budget highlights — these single documents generate dozens of exam questions.
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