RBI working on green finance framework

Even for domestic loans, rate of interest would be decided after taking into consideration ESG score

The Reserve Bank of India (RBI) is working on a framework for standardising green bond issuances and financing issues, to align India with other nations that already has such rules, according to sources.

The Indian Banks’ Association (IBA) held a meeting on Monday to provide their inputs to the central bank to develop the framework. Sources said RBI has just started the process and no concrete step has been taken.

Some domestic institutions — like the National Bank for Agriculture and Rural Development, Small Industries Development Bank of India (SIDBI), Exim Bank, YES Bank, Axis Bank — have their own