Kathmandu, July 19
Development
Banks have decided to introduce 'Green Deposit Scheme' and 'Green Loan Scheme'
to contribute to sustainable development.
The
Development Bankers Association of Nepal (DBAN) said in a statement on
Wednesday that its working committee decided to include agriculture or forestry
enterprise, hydro, solar, bio and wind energy, cable car or ropeway, electrical
vehicle and water processing industries in their 'Green Loan Scheme'.
"As
the investment of banks and financial institutions is increasing in relatively
less productive areas, the DBAN has decided to introduce 'Green Loan Scheme'
with the aim of increasing loans in the areas that support productive and
sustainable development," read the statement.
With the
aim of gradually securing resources for investments in green credit schemes,
the 'Green Deposit Scheme' will also be introduced.
A product
paper for the loan scheme will be developed in such a way that the interest
rate in the 'Green Deposit Scheme' will be higher by 0.25 percentage points
compared to other savings and fixed deposits while the 'Green Loan Scheme' will
have interest rate less by 0.25 percentage points than other loan schemes of
the same nature.
The DBAN has
also decided that the member banks can develop the product paper to provide
more facilities according to the business strategy of their respective banks.
Any industry or business that emits carbon and affects climate change will not
be eligible for the green loan facility.
The
association has issued a circular to its member banks asking them to get the
product paper approved by the board of directors of the respective bank to launch
'Green Deposit Scheme' and 'Green Loan Scheme' to the market.
Published in The Rising Nepal daily on 20 July 2023.
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