Archive · 22 Aug 2025
India's Green Deposits Fuel Solar and EV Sectors
India is trying to fight climate change.
The government has started "Green Deposits" which are like special savings accounts.
People put money in these accounts, and the banks use that money to fund projects that help the environment, like solar power and electric cars.
So far, lots of money has been raised, but it's still a small part of all the money in banks.
Banks are trying to attract more people, as there are challenges in this new system.
RBI launched Green Deposits to fund environmentally sustainable projects.
Banks have mobilized Rs 2,678.85 crore in green deposits in FY24-25.
Public sector banks account for nearly 75% of green deposits raised.
Funds are mainly deployed in solar and electric vehicle (EV) sectors.
Green deposits currently represent less than 1% of overall bank deposits.
- Who
- The Reserve Bank of India (RBI) launched Green Deposits.
- What
- India is using Green Deposits to fund sustainable projects.
- When
- FY24-25 is the period for assessing Green Deposits.
- Where
- India, with focus on renewable energy and EVs.
- Why
- To achieve net-zero emissions by 2070 and meet climate goals.
Positive Outlook
Cautious View
Growth Potential vs. Adoption Challenges
Positive Outlook
Green deposits provide crucial financing for sustainable projects, supporting India's climate goals and clean energy transition.
Cautious View
Green deposits face adoption challenges including a lack of awareness, limited incentives, and stringent compliance requirements hindering wider participation.
- Green Deposits Mobilized (FY24-25)
- Rs 2,678.85 crore
- Primary Beneficiaries
- Solar and EV sectors
- Share of Public Sector Banks
- 75% of green deposits
- Green Deposits Deployment Rate
- Over 97%
- Goal
- Net-zero emissions by 2070