Indian banks ask RBI to cut CRR for green deposits
Indian banks are asking the Reserve Bank of India (RBI) to lower the cash reserve ratio (CRR) for green deposits.
Right now, banks have to keep 3% of their deposits with RBI, which makes lending for eco-friendly projects more expensive.
If the CRR drops, banks could free up cash and offer cheaper loans for climate-friendly initiatives.
PSB Confluence suggests 0.1% CRR cut
This idea was floated at a recent PSB Confluence, as part of India's push toward net-zero emissions.
Bank executives suggested cutting CRR by up to 0.1%.
Even though banks collected ₹4,000 crore to ₹5,000 crore in green deposits in 2025-26, strict rules and worries about "greenwashing" are making it tough to turn those funds into real impact.
According to NITI Aayog, India needs a massive $22.7 trillion for its net-zero journey, so smoother regulations could really help boost climate financing.