SBI Green Rupee Term Deposit: Rates, Tenures, DICGC Cover and Tax Guide

Summary: State Bank of India’s Green Rupee Term Deposit (SGRTD) is a rupee-denominated term-deposit product created within the RBI framework for green deposits, under which mobilised funds are intended to finance or refinance eligible green activities and projects. SBI’s product page, last updated 1 May 2026, lists three tenures—1,111 days, 1,777 days and 2,222 days—and permits resident individuals, non-individual customers and NRIs, with NRI availability through NRO and NRE deposits. The minimum deposit is ₹1,000 and SBI states no maximum product-level limit, although the applicable retail/bulk rate slab matters. For retail deposits from ₹1.01 crore to below ₹3 crore, the displayed rates are 6.20% for general customers and 6.70% for senior citizens for 1,111 and 1,777 days; for 2,222 days, SBI displays 5.95% for general customers and 6.95% for senior citizens. Premature withdrawal follows SBI’s normal term-deposit rules, loan/overdraft against the green deposit is permitted, nomination is available for eligible categories, and TDS applies under the Income-tax law. Deposit insurance through DICGC covers eligible principal and accrued interest together up to ₹5 lakh per depositor per bank in the same right and capacity; it is not ₹5 lakh per FD. Interest remains taxable even where no TDS is deducted.

What SBI Green Rupee Term Deposit Is

The Reserve Bank of India’s Framework for Acceptance of Green Deposits was issued on 11 April 2023 to encourage regulated entities to mobilise funds for green activities and projects and to develop India’s green-finance ecosystem. SBI’s Green Rupee Term Deposit is its dedicated deposit product under that framework. The depositor receives a bank term deposit; the “green” label concerns the bank’s use and allocation of eligible proceeds and related governance, reporting and assurance requirements. It does not convert the deposit into a market-linked instrument or equity investment.

For a depositor, the principal commercial features remain those of a term deposit: fixed tenure, stated interest rate applicable on the booking date, maturity instructions, premature-withdrawal conditions, nomination, KYC and tax deduction. The green-deposit framework adds a use-of-proceeds layer at the bank level rather than giving the depositor direct ownership of the financed green project.

Current SBI Green Rupee Deposit Rates and Tenures

The above rates are those displayed by SBI on its SGRTD page last updated 1 May 2026. SBI labels the retail slab on that page as ₹1.01 crore to below ₹3 crore and the bulk slab as ₹3 crore and above. Rates can change prospectively; the booking-date rate and deposit receipt govern an individual deposit. The unusually higher senior-citizen rate shown for the 2,222-day retail tenor should therefore be checked against SBI’s live quotation at the time of placement rather than extrapolated from the other tenures.

Eligibility, Deposit Amount and Product Form

SBI states that resident individuals, non-individual customers and NRI customers are eligible. For NRIs, the product is available through NRO and NRE deposits. The deposit is accepted only in Indian rupees. The minimum amount is ₹1,000 and the product page states no maximum limit, although rate slabs and other bank rules apply. Eligible forms are Term Deposit and Special Term Deposit. SBI specifically excludes MOD, Tax Saving Deposit, Annuity Deposit, Recurring Deposit and similar products from SGRTD.

Interest payout and compounding

The economic outcome depends on whether the customer selects a periodic-interest Term Deposit or a cumulative/Special Term Deposit structure available under SBI’s deposit rules. A periodic payout provides cash-flow during the tenure, while a cumulative structure retains interest for payment at maturity and therefore produces a different effective maturity value. Customers should use the exact rate, payout frequency and compounding convention printed in SBI’s deposit advice; an annual quoted rate should not be treated as the maturity yield without considering compounding and payout timing.

Premature Withdrawal, Renewal and Loan/OD

Premature withdrawal

SBI states that premature withdrawal of SGRTD follows the guidelines applicable to ordinary term deposits. That means the depositor should check the premature-closure penalty and the rate payable for the actual period the money remained with the bank at the time of withdrawal. The originally contracted rate should not be assumed to survive an early closure. Large deposits may also be subject to product-specific callable/non-callable conditions where applicable.

Renewal and maturity instructions

SBI states that maturity instructions are the same as for Term Deposit/Special Term Deposit. A customer should therefore verify whether the deposit is set to credit proceeds, renew principal, or renew principal plus interest. Automatic renewal can expose the customer to the rate prevailing on the renewal date rather than the original SGRTD rate. SBI also states that an existing ordinary TDR cannot simply be converted into SGRTD; a fresh eligible placement is required.

Loan or overdraft against deposit

SBI expressly permits overdraft/demand-loan facility against an available Green Deposit. The sanctioned percentage, interest spread over the deposit rate, documentation and margin are governed by the bank’s prevailing loan-against-deposit rules. Borrowing against an FD preserves the deposit but creates a separate interest cost; the gross deposit interest should not be compared with the loan rate without considering tax on deposit interest and the borrower’s facts.

Nomination, KYC and Transferability

Nomination is available for eligible customer categories. KYC follows SBI’s prevailing KYC requirements. SBI also permits account transfer across its branches in India. Nomination is important operationally because it facilitates settlement on death, but nomination does not necessarily determine beneficial succession rights under every personal-law situation. Depositors should keep nominee details, maturity instructions and contact information current.

DICGC Insurance: ₹5 Lakh Is Per Depositor Per Bank

Eligible deposits with insured banks are covered by the Deposit Insurance and Credit Guarantee Corporation. DICGC states that principal and accrued interest are insured together up to a maximum of ₹5 lakh for each depositor in the same right and same capacity at a bank. Multiple savings accounts and FDs in the same ownership capacity at the same bank are aggregated for this limit. Deposits in different banks are separately insured, and deposits held in different recognised rights/capacities can be treated separately under DICGC rules.

Accordingly, a ₹10 lakh SGRTD is not fully insured merely because it is split into two ₹5 lakh receipts at SBI in the same name and capacity. The insurance cap is not a rating of the deposit and does not mean that amounts above ₹5 lakh are prohibited; it defines DICGC’s statutory insurance protection if an insured-bank failure triggers the scheme.

Regulatory Position: RBI Green Deposit Framework

The RBI green-deposit framework requires regulated entities accepting green deposits to maintain a Board-approved financing framework covering eligible green activities/projects, allocation of proceeds, project evaluation and selection, monitoring, reporting and external review/verification. For a depositor, the regulatory relevance is that the green label is governed by a formal framework rather than a free-form marketing description. It does not, however, create a sovereign guarantee of the deposit or a guarantee that every financed project will perform commercially.

SBI is a banking company regulated by RBI. Bank fixed deposits are not credit-rated in the same manner as corporate fixed deposits or non-convertible debentures; investors should therefore not look for an issuer-rating label as a substitute for the banking regulatory and DICGC framework.

Income-Tax and TDS for FY 2026-27

Interest on a bank term deposit is taxable under the applicable head based on the depositor’s facts; for an ordinary individual investor it is generally reported as income from other sources. TDS is only a collection mechanism and does not make the interest tax-free below the TDS threshold. TaxGuru’s TDS changes from 1 April 2026 explains that under the Income-tax Act, 2025 the corresponding bank-interest withholding rule is in section 393(1), with a ₹1,00,000 threshold for senior citizens and ₹50,000 for others for specified bank/co-operative bank/post-office interest, at a 10% rate where applicable. The Section 393 TDS provisions also set out these bank-interest thresholds.

Form 15G and Form 15H

SBI’s product page permits eligible customers to submit Form 15G/15H to avoid TDS. These forms are declarations subject to statutory conditions; they are not a general election to postpone tax. TaxGuru’s Form 15G/15H guidance discusses the declaration mechanism. Form 15G is generally relevant to eligible resident non-senior declarants satisfying the conditions, while Form 15H is for eligible resident senior citizens. A depositor must consider total estimated tax liability, not only interest from one FD.

PAN and higher TDS

A valid PAN should be furnished to the bank. Where the higher-deduction provision for non-PAN cases applies, TDS can be materially higher than the normal 10% rate. TDS credit should be reconciled with Form 26AS/AIS and the bank’s interest certificate. A mismatch between accrued interest and TDS entries should be investigated before filing the return.

Senior citizens

Senior citizens receive two separate benefits that should not be confused: SBI may offer a higher deposit rate, and income-tax law provides a higher TDS threshold for specified bank interest. Neither benefit makes the interest exempt from income tax. Final tax depends on total income, deductions/rebate eligibility and the tax regime applicable for FY 2026-27.

NRE and NRO Deposits: Tax Distinction

Because SBI makes SGRTD available to NRIs through NRE and NRO deposits, the underlying account character matters. Interest on qualifying NRE deposits can enjoy exemption subject to the statutory conditions and the individual’s status, whereas NRO interest is generally taxable in India and subject to non-resident withholding rules. An NRI should not apply the resident ₹50,000/₹1,00,000 bank-interest TDS thresholds or Forms 15G/15H mechanically. FEMA residential status, income-tax residential status and the type of deposit must be tested separately.

Frequently Asked Questions

1. What are the SGRTD tenures?

SBI lists 1,111 days, 1,777 days and 2,222 days.

2. What is the minimum deposit?

₹1,000. SBI’s product page states no maximum product-level limit, subject to applicable rate slabs and bank rules.

3. Do senior citizens get a higher rate?

Yes. SBI displays separate senior-citizen rates. The live rate on the booking date should be checked before placement.

4. Is the entire SBI Green Rupee Term Deposit insured by DICGC?

Only up to the statutory ₹5 lakh aggregate limit for principal plus accrued interest per depositor per bank in the same right and capacity.

5. Can SGRTD be closed before maturity?

SBI allows premature withdrawal under its normal term-deposit premature-withdrawal rules; the applicable rate and penalty should be checked at closure.

6. Can a loan be taken against SGRTD?

Yes. SBI states that overdraft/demand-loan facility against available Green Deposits is permitted, subject to prevailing bank terms.

7. Is interest tax-free if no TDS is deducted?

No. TDS threshold and final income-tax liability are different. Interest remains reportable/taxable according to the applicable law.

8. Can NRIs open SGRTD?

Yes, SBI states that NRI customers can use the product through NRO and NRE deposits; tax and FEMA consequences differ by account type.

Key Takeaways

• SGRTD is SBI’s term-deposit product under the RBI green-deposit framework.
• Three stated tenures are 1,111, 1,777 and 2,222 days.
• SBI’s page last updated 1 May 2026 displays separate general, senior-citizen, retail and bulk rates.
• Minimum deposit is ₹1,000; eligible forms are Term Deposit and Special Term Deposit.
• Premature withdrawal follows ordinary SBI term-deposit rules and loan/OD facility is permitted.
• DICGC protection is capped at ₹5 lakh for principal plus interest per depositor per bank in the same right and capacity.
• For FY 2026-27, bank-interest TDS thresholds are ₹50,000 for others and ₹1,00,000 for senior citizens in the specified cases; final tax liability is separate.
• NRE and NRO tax treatment must be analysed separately for NRIs.

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Disclaimer: This article is for general informational and educational purposes only and is based on publicly available SBI, RBI, DICGC and income-tax material reviewed as on 7 October 2026. It is not a deposit recommendation, ranking, investment advice, tax advice, legal advice or personalised financial advice. Interest rates, rate slabs, senior-citizen benefits, premature-withdrawal penalties, loan margins, payout options, tax provisions and TDS treatment can change, and the booking-date deposit receipt and SBI’s prevailing terms govern an actual deposit. DICGC insurance is subject to statutory aggregation and capacity rules and should not be interpreted as a guarantee of all deposits. NRE/NRO tax consequences depend on residential status and statutory conditions. Readers should verify SBI’s live rate quotation, RBI/DICGC rules and the Income-tax Act, 2025 before acting. TaxGuru, its owners, management, editors, authors, employees and associated persons accept no responsibility or liability for any loss, damage, consequence, decision or action arising from reliance on or use of this article.