Reserve Bank announces guidelines on climate risk, sustainable finance
Mumbai, February 8, 2023
Based on analysis of feedback received on a July 2022 discussion paper on Climate Risk and Sustainable Finance, the Reserve Bank of India (RBI) on Wednesday issued certain guidelines to regulated entities.
The guidelines consist of a broad framework for acceptance of green deposits, disclosure frameworks on climate-related financial risks and guidance on climate scenario analysis and stress testing, the RBI said today.
“The Reserve Bank recognises that climate change can translate into climate-related financial risks for Regulated Entities (REs) which can have broader financial stability implications", the central bank said.
The guidelines shall be issued in a phased manner and the RBI will dedicate a page on its website to consolidate all instructions and related communications on climate risk and sustainable finance.
In August 2021, the Housing Development and Finance Corporation Limited (HDFC) had launched green deposits, which were directed towards financing of green and sustainable housing credit solutions and services.
[The Business Standard]