Reserve Bank of India (Non-Banking Financial Companies – Climate Finance and Management of Climate Change Risks) Directions, 2025
UR
- Applies toFinance companies
- StatusIn force
- IssuedNov 28, 2025
- Amendmentsnone tracked
- Length26 points in 5 sections · 2 min read
The four dates on this rule
- PublishedNov 28, 2025The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyNov 28, 2025The day this rule starts to apply, as RBI's own text states it.
- Time to get readyNoneIt starts to apply on the day it was published.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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25 of the 26 points name no product and bind every product. All products.
What it says
How firm is each point
Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.
Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.
Needs judgement — RBI leaves this to the bank to settle, so nobody can give you a fixed number here.
Chapter I. Preliminary
1. Starts at once
The rules took effect the moment RBI issued them.
2. Who must follow this
These rules cover deposit-taking NBFCs, defined precisely below.
3. The two kinds of NBFC
Only deposit-taking NBFCs and deposit-taking housing finance companies are covered.
4. What a green deposit is
A green deposit is money set aside just for green finance.
5. What greenwashing means
Greenwashing is marketing something as green when it is not.
Chapter II. Role of the Board
1. Board approves the policy
The board must approve a full policy on green deposits before raising them.
Chapter III. Framework for acceptance of Green Deposits
Must know
1. How deposits are issued
Green deposits may be issued as cumulative or non-cumulative deposits.
2. Renew or withdraw at maturity
On maturity a depositor may renew the deposit or withdraw it.
3. Rupees only, no foreign currency
Green deposits are held only in Indian rupees, never in a foreign currency.
4. What the framework must cover
The board-approved framework must cover how green deposits are allocated.
5. Unused funds parked safely
Money not yet allocated is parked safely until it is used.
6. Proceeds follow the green taxonomy
Money raised from green deposits must go toward projects on RBI's own green list.
7. Sin industries excluded
Alcohol, weapons, tobacco, gaming and palm oil are excluded.
8. Big hydropower plants excluded
Hydropower plants bigger than 25 MW are excluded from green finance.
9. Report checks fund use
The verification report checks that proceeds went to eligible projects.
10. Explain if impact unclear
If impact cannot be measured, the reasons and a fix plan must be disclosed.
Do it
11. Policy goes on the website
A copy of the policy must be published on the website.
12. External review is required
An external reviewer must check the framework.
13. Framework published before use
The framework and the reviewer's opinion go on the website before use.
14. Impact assessed every year
External firms help assess the impact of green finance every year.
15. Both reports go online
The verification report and the impact report both go on the website.
16. Board sees a report yearly
The board gets a review report within three months of the year end.
BankPulse example. A bank's financial year ends 31 March. Its board review of the green deposit report is due by 30 June -- three months later, which is the limit RBI names.
Background
17. Financial statement disclosures
Annual financial statement disclosures follow RBI's separate disclosure rules.
Chapter IV. Repeal and other provisions
1. Old green deposit rules gone
The earlier green deposit rules for NBFCs are now repealed.
2. Other laws still apply
These rules add to other laws. They do not cut them down.
3. RBI's reading is final
If these rules are unclear, RBI's own interpretation decides.
The same subject for other kinds of institution
The same subject for other kinds of institution.
Other RBI rules for NBFCs
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