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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The central bank has unveiled a framework for banks and NBFCs to accept deposits meant for investing in climate projects. Neither lenders nor depositors are interested.
The Reserve Bank of India is stepping up its push for climate finance. Last month, it unveiled guidelines for lenders to accept deposits exclusively meant for investing in “green” projects. There’s only one problem: Such deposits are simply not attractive enough for either banks or deposit holders.
To be fair, the new norms are primarily aimed at curbing greenwashing. The framework encourages banks and non-banking financial companies to accept green deposits from businesses. These are like regular fixed deposits, except that the funds can only be used for climate action projects.
Until now, the central bank had not defined what …
Lenders stand to gain a lot more than borrowers in the current challenging market environment
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
High returns, RBI-regulated comfort, and easy withdrawals drew investors in. Now, with repayments drying up, the fintech platform, its NBFC partner, and the regulator are pointing fingers—leaving customers to chase their own money.
