Green Deposits for a Greener Future: A Study of SBI’s Green Rupee Term Deposit

By,

Shri Mukti Prakash Behera

Faculty, SBSC – Hyderabad

&

Ms. Deepa

Chief Manager & Faculty

SBSC – Hyderabad

Abstract

The growing emphasis on sustainable development and responsible finance has encouraged banks to integrate environmental considerations into their products, services and investment decisions. As financial intermediaries, banks play an important role in mobilising savings and directing capital towards activities that contribute to environmental sustainability. In this emerging context, green deposits represent an important financial innovation by enabling customers to link their savings with environmentally responsible economic activities. The present study examines the Green Rupee Term Deposit (GRTD) offered by the State Bank of India as an emerging instrument of green banking and sustainable finance.

The study seeks to understand the concept, features and strategic relevance of SBI’s Green Rupee Term Deposit and examine how such deposits can contribute to the mobilisation of funds for eligible green activities. Unlike conventional term deposits, green deposits create a stronger linkage between customer savings and the financing of environmentally sustainable projects. This makes the product relevant not only from a financial perspective but also from the perspectives of environmental responsibility, customer awareness and sustainable banking. The study particularly explores whether green deposits can create a meaningful connection between customer savings, banking products and sustainability outcomes.

The research adopts a descriptive and exploratory approach, drawing upon secondary information relating to green finance, sustainable banking, regulatory developments, green deposits and SBI’s GRTD. The study reviews the conceptual evolution of green banking and examines the role of banks in supporting India's broader sustainability objectives. It also analyses the product from multiple dimensions, including its purpose, target customers, environmental orientation, potential customer value proposition and strategic relevance to SBI. The study further considers the role of transparency, disclosure and customer communication in building confidence in green financial products.

A key focus of the study is the customer perspective. While environmental sustainability is increasingly recognised as an important societal objective, customer adoption of green financial products may depend on several factors, including awareness, perceived credibility, financial returns, ease of access, trust in the bank and understanding of how deposited funds contribute to green activities. The study therefore conceptualises green deposit adoption as an intersection of financial value and environmental value. It proposes that customers may be more receptive to green deposits when they clearly understand both the financial proposition and the environmental impact associated with their deposits.

The study also highlights the potential role of SBI's extensive customer base and branch and digital banking ecosystem in creating awareness and encouraging participation in green finance. As one of India's major banking institutions, SBI has the potential to mainstream sustainable financial products by integrating sustainability into everyday customer conversations rather than positioning green finance as a niche offering. Effective communication through branches, digital channels and relationship-based selling could help customers understand how ordinary savings decisions can potentially contribute to broader sustainability objectives.

The study argues that the long-term success of green deposits depends not merely on product availability but on the development of customer trust, transparency and measurable environmental impact. Clear communication regarding the utilisation of green deposits, appropriate reporting mechanisms and credible impact assessment can strengthen the perceived authenticity of such products. From the bank's perspective, green deposits can also contribute to strengthening its sustainability positioning, deepening customer engagement and supporting the transition towards a more environmentally responsible banking ecosystem.

The study contributes to the growing literature on green banking and sustainable finance by examining green deposits from both the institutional and customer perspectives, with specific reference to SBI's Green Rupee Term Deposit. It proposes that green deposits can serve as a bridge between financial inclusion, customer participation and environmental sustainability, if customers receive adequate information about the product and its environmental purpose. The study concludes by identifying opportunities for greater customer awareness, targeted communication, digital engagement and impact-oriented reporting that can strengthen the adoption and strategic relevance of green deposits in Indian banking.

Keywords: Green Banking, Green Deposits, Green Rupee Term Deposit, Sustainable Finance, SBI, Green Finance, Customer Awareness, Environmental Sustainability, Responsible Banking, Sustainable Banking.