RBI joins climate change fight

Mumbai: Banks received a clear message from the RBI last week — climate change is a risk to financial firms and there is a clear case to act early to ensure an orderly transition. This message came from RBI deputy governor M Rajeshwar Rao in a speech at a conference on green and sustainable finance.

This is the first time that the RBI has stated that the central bank is part of the fight against climate change. The regulator’s unequivocal stance came at a time former governor Raghuram Rajan had stirred a debate on the subject, stating that green policies were a purview of the government.