Reserve Bank of India (RBI) joins Network for Greening the Financial System- NGFS

01 May 2021 Current Affairs:The Reserve Bank of India (RBI) has recently joined the Network for Greening the Financial System (NGFS). By joining the system, the Reserve Bank of India will learn from the financial sector and contribute to global climate risk management. Ultimately, Apex Bank will work with its global partners to support the transition to a sustainable economy.

Highlights:
♦ The system is made up of 83 different central banks. There are 75 participants and 13 observers among them.
♦ The system’s main goal is to increase and accelerate green finance.
♦ It was revealed in 2017 at the One Planet Summit in Paris.
♦ Eight central banks spearheaded the campaign, which was led by the Banque de France.
♦ Its aim is to assist members in developing design policies and resiliency to climate risk in the financial sector.

Current Functions of NGFS:
♦ NGFS is currently operating under the following conditions:
♦ Microprudential or supervision: Singapore is in charge of this.
♦ Bank of England’s Macrofinancial works
♦ Green Finance Scaling Up: Deutsche Bundesbank (Germany)
♦ The International Monetary Fund (IMF) is bridging data gaps.
♦ Research: China