Network for Greening the Financial System (NGFS)

Why in news?

• The Reserve Bank of India (RBI) announced on 4^th November its commitment to support the greening of India’s financial system. This is an outcome of the RBI joining the central banks and supervisors’ Network for Greening the Financial System (NGFS).

About NGFS:

• The Network for Greening the Financial System (NGFS) is a group of Central Banks and Financial Supervisors willing, on a voluntary basis, to exchange experiences, share best practices, contribute to the development of environment and climate risk management in the financial sector, and to mobilize mainstream finance to support the transition toward a sustainable economy
• The NGFS was created at the Paris “One Planet Summit” in 2017 and its secretariat is hosted by the Banque de France.
• Reserve Bank of India joined the group in 2021.

Members:

• As of November 2nd 2021, the NGFS consists of 100 members and 16 observers.

PRACTICE QUESTION:

Which of the following statements is/are correct regarding ‘Network for Greening the Financial System’?

1. It is a network of central banks that aims to accelerate the scaling up of green finance

2. Reserve Bank of India is a member of the group

Select the correct answer using the code given below:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer