AU Small Finance Bank (AU SFB), India’s largest SFB, launches its first Green Fixed Deposit (FD) named Planet First – AU Green Fixed Deposit, designed to donate its entire profits to renewable and green projects like power, electric mobility solutions etc. AU SFB is in a unique position to support sustainable “Badlaav” by progressively introducing such retail products in accordance with regulatory guidelines.
The AU SFB’s intention to take climate action would be further enhanced by the Green Deposit policy and framework. In compliance with the legal requirements, a third party conducts an external evaluation of the policy and framework once it has been authorised by the Board. By allocating capital for environmentally friendly projects and financing green assets, AU SFB’s sustainability initiatives will keep developing to better represent “Badlaav” on the “Forever” journey.
The Planet First – AU Green Fixed Deposit has a low minimum investment requirement of Rs 5,000 and delivers an enticing interest rate of up to 8.50 percent. With this new service, AU SFB’s current and potential clients may easily secure their Green FD via Video Banking, the AU 0101 App, NetBanking, or by going to the AU Small Finance Bank branch that is closest to them. Since the last Wednesday of October is also Sustainability Day, the Green FD is being introduced on this day.
Customers are able to select a period that best suits their financial goals, ranging from a two-year minimum to longer alternatives. To assist clients in efficiently managing their cash flows, Planet First – AU Green Fixed Deposit offers a range of interest payment options, such as monthly, quarterly, and cumulative (at maturity). Customers will also be kept informed at every stage of the process by receiving frequent updates on how their funds are being used and the status of the green initiatives that Planet First – AU Green Fixed Deposit is supporting.
This is the nation’s first Green FD, having been introduced in accordance with Reserve Bank of India (RBI) guidelines that require the proceeds to be used exclusively for projects that promote energy efficiency, reduce carbon emissions and greenhouse gas emissions, enhance climate resilience and adaptation, and protect and enhance natural ecosystems and biodiversity. It represents a groundbreaking step for the Indian banking sector. These funding will be used throughout India, with a few rural Bharat green initiatives serving as key focal points.
Speaking on this launch, Sanjay Agarwal, Founder and MD & CEO, AU Small Finance Bank said, “Climate change has been recognized as one of the most critical challenges faced by the global society and economy in the 21st century and Indian Government has taken a leading role in climate control change by committing to net-zero target at COP 27 (Confederation of Parties) meeting. Additionally, the Reserve Bank of India (RBI) is among the first few global regulators to introduce a green deposit framework. Recognizing ‘Environment’ as a key stakeholder, we at AU, have recently enhanced our sustainability initiatives under the guidance of the Sustainability Committee of the Board and the inclusion of senior board members and executives with expertise in sustainability. Now, we are taking an even greater step forward and will be among the first few banks to launch ‘Planet First – AU Green Fixed Deposit,’ fully compliant with the new RBI framework. Our intent is to keep planet first in our thoughts & actions and to foster ethos of recent G20 initiative of One Earth, One Family and One Future. We are extremely happy to add Green Fixed Deposit to our bouquet of innovative and customer-centric products. By choosing Planet First – AU Green Fixed Deposit, one joins a community of pro-green customers, where the deposits so mobilized, shall be channelized exclusively into essential green projects (including solar power, electric mobility solutions etc) that supports climate action.”
