New Delhi: The government of India is in discussions with several banks on a Green Finance Framework. The concessions in this framework would bring down capital cost for lending to the sector.
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Earlier this month, the Reserve Bank of India (RBI) had announced a framework for acceptance of green deposits of regulated entities. In order to foster and developed a green finance ecosystem in the country, the RBI put in place the framework, which will come into effect from 1 June 2023, to foster and develop a green finance ecosystem in the country.
A finance ministry official confirmed to Economic Times that the government is engaged with lenders but said talks are at a preliminary stage.
“If these key ratios are lowered for green deposits and lending it will give a boost to green finance,” ET quoted a bank executive aware of the development.
