BoI to help rural borrowers earn carbon credits

Bank of India (BoI) today said it has entered into an agreement with a US-based company for helping its rural borrowers implementing green solutions earns carbon credits.

The bank has entered into a memorandum of understanding with New York-based Micro Energy Credit Corporation for the development, purchase and sale of voluntary emission reduction carbon credits, it said in a statement issued here.

The bank will form bunches of borrowers who have availed credit for off-grid solar lighting which, post audit, will earn the individual borrower some money, a senior bank official said.

“The bigger companies can afford hiring consultants. This is to help rural households earn from their efforts. In about 2-3 years, a borrower should at least be able to pay for the new battery through the realisation of proceeds,” its general manager for priority sector lending and rural lending Mr N C Khulbe said.

Only those households which have borrowed from the bank can avail the scheme, he said, adding it already has 3,000 accounts (borrowers) for solar lighting.

He, however, clarified that the bank is looking at the initiative as a corporate social responsibility as it entails empowering borrowers and is not looking at it to earn any fees from the transactions.