Page 9 - Banking Finance May 2023

RBI CORNER

Reserve Bank

RBI appoints Neeraj Nigam the funds could be used for financing cation of proceeds raised from green
activities like renewable energy, green deposits should be based on the official
as executive director
transport and green buildings. Indian green taxonomy.
The Reserve Bank of India appointed
Climate change has been recognised as Pending finalisation of the taxonomy,
Neeraj Nigam as the new Executive
one of the most critical challenges and as an interim measure, REs would be
Director (ED) with effect from April 03,
globally, various efforts have been required to allocate the proceeds
2023.
taken to reduce emissions as well as raised through green deposits towards
Prior to being promoted as ED, Nigam a specified list of green activities/
promote sustainability.
was heading the Bhopal Regional Of-
projects.
The financial sector can play a pivotal
fice of the Bank as Regional Director.
role in mobilising resources and their
"Nigam has, over a span of more than RBI approves re-appoint-
allocation thereof in green activities/
three decades, served in Regulation
projects. Green finance is also progres- ment of Sanjay Agarwal as
and Supervision, Human Resource
sively gaining traction in India, RBI said
Management, Premises, Currency Chief of AU SFB for three
as it issued the framework for accep-
Management, Bank Accounts and
tance of green deposits by regulated years
other areas in the Reserve Bank, in its
entities. The Reserve Bank of India has ap-
Central Office as well as Regional Of-
proved the re-appointment of Sanjay
fices," stated a press release. Some Regulated Entities (REs) are al-
Agarwal as Managing Director & CEO
ready offering green deposits for fi-
Nigam holds a Bachelor's degree in Civil of Jaipur-headquartered AU Small Fi-
nancing green activities and projects.
Engineering from Barkatullah Univer- nance Bank for three years with effect
The framework will come into effect
sity, Bhopal besides having earned the from 19 April, 2023.
from June 1, 2023.
professional qualification of Certified
The central bank also approved the re-
Associate of Indian Institute of Banking The purpose and rationale for the
appointment of Uttam Tibrewal as
and Finance (CAIIB). framework, RBI said is to encourage
Whole Time Director for three years
REs to "offer green deposits to custom-
with effect from 19 April, 2023, the
ers, protect interest of the depositors,
RBI issues framework for
bank said in a regulatory filing.
aid customers to achieve their
acceptance of green de-
sustainability agenda, address The bank said the shareholders had
posits by banks, NBFCs greenwashing concerns and help aug- already approved the aforementioned
ment the flow of credit to green activi- re-appointments via postal ballot on 9
Reserve Bank of India issued detailed
ties/projects". March, 2022.
guidelines for acceptance of 'green
deposits' by banks and NBFCs wherein Further, the central bank said the allo- The re-appointment of Agarwal and
BANKING FINANCE | MAY | 2023 | 9