SBI has approached the Reserve Bank of India to classify loans to sectors using carbon-reducing technologies as priority sector lending.
SBI has also sought a lower cash reserve ratio requirement for green deposits, the framework for which was announced by the RBI in April 2023. The proceeds from green deposits are to be utilised for financing green activities and projects.
“We have written to the RBI to give priority sector classification to credit for emission reduction technologies,” Ashwini Kumar Tewari, managing director (risk, compliance and stressed assets resolution group) said on the sidelines of a CII-organised Banking Colloqium on Thursday.
