MUMBAI, October 7 — The Reserve Bank of India, in consultation with the Central Government, on Wednesday notified the definitive borrowing schedule for issuing ₹20,000 crore in Sovereign Green Bonds (SGrBs) during the second half (H2) of fiscal year 2026-27, advancing public capital financing for national decarbonization projects.
Under the notified issuance framework, the sovereign borrowing will be bifurcated across two equal tranches of ₹10,000 crore each, structured with five-year and ten-year maturity tenors. Financial institutions and primary dealers can bid through standard yield-based auctions conducted on the RBI's electronic E-Kuber platform. The securities qualify for Statutory Liquidity Ratio (SLR) eligibility for commercial banks and are open to foreign portfolio investors under the 'Fully Accessible Route' (FAR).
Proceeds accrued from the auctions will be earmarked under the Ministry of Finance's Sovereign Green Bond Framework, ring-fenced exclusively for verifiable green expenditures across utility-scale solar generation, electric railway traction, coastal mangrove conservation, and national green hydrogen production hubs. The Green Finance Working Committee (GFWC), headed by the Chief Economic Adviser, will periodically evaluate project allocation fidelity to prevent greenwashing risks.
Sovereign debt management mechanics, Greenium yield dynamics, SLR definitions under Section 24 of the Banking Regulation Act 1949, and India's Updated Nationally Determined Contributions (NDCs) represent critical topics across UPSC Civil Services (GS-III: Public Finance & Ecology) and RBI Grade B modules. Aspirants should note that India debuted its sovereign green bond program in January 2023 with an initial ₹16,000 crore issuance, and the framework strictly conforms to the Green Bond Principles formulated by the International Capital Market Association (ICMA).