RBI exploring appropriate coverage for green deposits; climate-change big risk to global economy, says Patra

Deputy Governor Michael Patra of the Reserve Bank of India (RBI) highlighted the institution's exploration of strategies for green deposits and climate-risk-based differential premiums at the 79th Executive Committee Meeting of the International Association of Deposit Insurers (IADI) in Rome, Italy. \r

Patra underscored climate change as the foremost risk to the global economy and financial systems, emphasizing the need for enhanced coordination and information sharing among domestic and international safety net participants. He referenced the Deposit Insurance and Credit Guarantee Corporation (DICGC) of India, a subsidiary of the RBI, which safeguards bank customers' deposits. \r

The RBI's framework for green deposits aims to bolster India's green finance ecosystem, addressing sustainability goals and supporting investments in sovereign green bonds and climate-resilient initiatives.