HDFC Ltd, has established a green and sustainable deposits programme for retail consumers, with the goal of mitigating climate change. These fixed deposits will be used to fund green and sustainable housing finance and service solutions. Individuals can receive 6.55 percent interest on deposits with terms ranging from 3 to 10 years. Senior persons will also be entitled for a 0.25 percent annual bonus on deposits of up to Rs 20 million. Furthermore, if the deposits are made through the company’s online platform, an additional interest rate of 0.1 percent per annum will be applied to these deposits up to Rs 5 million.On conventional deposits, HDFC Ltd typically pays 6.65 percent interest. People who choose green and sustainable deposits would receive a 10 basis point lower rate of return on their accounts, equating to Rs 100 on a Rs 0.1 million deposit.
HDFC has established green and sustainable deposits to meet the growing need for green solutions. This allows itscustomers to grow their wealth while also helping to meet the demands of a changing world. HDFC is committed to assisting India’s efforts to develop a low-carbon economy that is both sustainable and environmentally friendly.
Prior to HDFC Ltd, HSBC India had also introduced its corporate green deposit programme. The funding from this program will be used by the bank to sponsor green activities such as renewable energy, clean transportation, pollution prevention and control, green building, sustainable water, wastewater management, and other green efforts. The company has obtained a Rs 250 million loan from the International Finance Corporation the World Bank Group’s investment arm, which will be used to expand green affordable home finance in India. Since, at least 25 per cent of the money has been targeted for green affordable housing, low and middle-income borrowers will have easier access to finances for affordable housing as a result of this IFC support.