RBI: Balance green fin push & credit risks
RBI
MUMBAI: Regulators and policymakers need to perform a "delicate balancing act" to successfully navigate the dual challenges of promoting
green finance
while managing heightened
credit risks
arising out of the transition to green technology that could threaten
financial stability
,
M Rajeshwar Rao
, deputy governor of
RBI
said, while speaking on green finance.
"The fact that the net-zero technologies driving the transition to decarbonisation, are at various developmental and evolving stages, itself signifies a significant increase in credit risks. Thus, there is a dichotomy wherein on one hand there is a need for incentivising green and
sustainable finance
and on the other there is an increase in inherent risks from encouraging such financing," he warned during his valedictory address at the Credit Summit 2025 in New Delhi.
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