RBI's Green Push: Tackling Climate Risks with Sustainable Finance

The Reserve Bank of India plans to establish an 'on Tap' cohort focusing on climate change risks and sustainable finance. This initiative is part of their regulatory sandbox. Governor Sanjay Malhotra stressed the importance of addressing financial risks posed by climate change through regulatory frameworks and green financing efforts.

The Reserve Bank of India (RBI) is ramping up its focus on climate change risks and sustainable finance, as announced by Governor Sanjay Malhotra. Speaking at a seminar on the subject, Malhotra unveiled plans for a new 'on Tap' cohort under the regulatory sandbox initiative.

The initiative aims to promote innovations in sustainable finance and manage the multifaceted risks posed by climate change to the financial system. According to Malhotra, the RBI will also organize a 'Greenathon' to delve deeper into these issues.

Malhotra highlighted the dual role of the RBI in not only managing climate-induced financial risks but also in supporting the financing of green transitions. The RBI aims to facilitate a regulatory framework that encourages sustainable finance, considering the unique challenges of emerging economies.

(With inputs from agencies.)