Reserve Bank Deputy Governor R Gandhi has expressed the need to balance green development and economic development.
Addressing a conference on sustainable finance in Mumbai on Friday, Mr. Gandhi said incorporating environmental concerns into commercial lending is a challenge in a country like India.
He informed that the new priority sector lending requirements announced by the RBI include devoting money to social infrastructure and small renewable projects, which will help support the objective of sustainability finance.
Mr. Gandhi added that Securities and Exchange Board of India has also worked out norms for raising money through green bonds, through which domestic financial institutions, like Exim Bank and Yes Bank have raised USD 1.1 billion in 2015.
