Months after the introduction of green deposits by the Reserve a Bank of India and most banks making these deposits operative, there hasn’t been much demand for them. At one end they don’t fetch the best rates to depositors and, hence, weak demand. But on the other end, banks themselves aren’t very comfortable with these deposits either. The end-use of green deposits is well-coded. On the face of it, it may seem like promoting eco-friendly utilisation of money. But it’s not so easy. From funding CFL lamps to solar panels for domestic use to any such non-thermal appliances, green deposits could be deployed towards these loans. While there is a specific asset, which is created by lending to these products, it’s still not something where lien could be exercised. It’s as good as an unsecured loan and banks are comfortable not to lend for such products. They are stay away from promote green deposits as much — yet another innovation has gone waste.
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