AU Small Finance Bank (AU SFB) has introduced its first Green Fixed Deposit (FD) called Planet First – AU Green Fixed Deposit, purposefully designed to allocate its entire proceeds to support renewable and green projects including solar power, electric mobility solutions etc.

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AU SFB is in a unique position to contribute towards sustainable ‘Badlaav’ through gradually offering such retail products aligned with the guidance of the regulator, the lender said in a statement.

The Planet First - AU Green Fixed Deposit offers an interest rate of up to 8.5%, with a minimum investment requirement of only ₹5,000. This new offering allows both AU SFB’s existing and new customers to secure their Green FD conveniently through Video Banking, the AU 0101 App, NetBanking, or by simply visiting their nearest AU Small Finance Bank branches.

The customers can opt for a tenure that aligns with their financial objectives, spanning from shortest term of two years to long-term options. Planet First - AU Green Fixed Deposit offer a variety of interest payment choices to customers, including monthly, quarterly, and cumulative (at maturity), to help manage their cash flows effectively. Furthermore, customers will receive regular updates regarding the utilisation of their funds and the progress of the green projects supported by Planet First - AU Green Fixed Deposit, keeping them well-informed every step of the way.

Speaking on this launch, Sanjay Agarwal, Founder and MD & CEO, AU Small Finance Bank said, “Climate change has been recognised as one of the most critical challenges faced by the global society and economy in the 21st century and Indian Government has taken a leading role in climate control change by committing to net-zero target at COP 27 (Confederation of Parties) meeting. Additionally, the Reserve Bank of India (RBI) is among the first few global regulators to introduce a green deposit framework."

(Edited by : Anshul)

First Published:Oct 27, 2023 6:13 PM IST