The central bank said it would issue guidelines on three broad contours — framework for acceptance of green deposits, disclosure framework on climate-related financial risks, and guidance on climate scenario analysis and stress testing.
The guidelines will be issued in a phased manner. RBI will also have a dedicated page on its website for all instructions, press releases, publications, speeches and related RBI communication on climate risk and sustainable finance.
RBI had brought out a discussion paper on climate risk and sustainable finance on July 27, 2022, for public comments and feedback. The proposed guidelines are based on analysis of the feedback received, RBI said.
Climate change is increasingly being recognised globally as a source of financial risk for banks. The uncertainty about the timing and severity of climate-related and environmental risk certainly threatens the safety, soundness and resilience of the financial intermediaries and, in turn, the stability of the overall financial system.