Q. In the context of the banking sector, what does the term “Green Deposit” refers to?

[A] Regular savings accounts with a focus on environmental sustainability.

[B] Fixed-term deposits where funds are specifically invested in green projects.

[C] Deposits earned by banks from recycling and waste management initiatives.

[D] Financial instruments linked to the performance of environmentally friendly companies.

Answer: B
Notes:

Explanation –

Green Deposits in the context of banking are fixed-term deposits where funds are specifically invested in green projects. This means that the money deposited into these accounts is used to finance environmentally friendly projects, such as renewable energy, clean technology, and sustainable infrastructure.

For example, ICICI Bank’s Green Deposits are fixed deposits where the funds are used to finance environmentally responsible projects such as renewable energy, clean transportation, and sustainable water management.

Recently, the RBI has released updated guidelines to clarify key provisions related to the RBI’s Green Deposits Framework.

Source: Forum IAS

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