A Study on Green Banking Services Initiated by Various Public and Private Sectors Banks in India

Abstract

Sustainable development and change is the need of the hour for survival in all spheres and it can be best achieved by allowing markets to work within an appropriate framework of economic viable instruments and cost effective regulations. As such one of the major economic agents influencing overall economic growth and industrial activity are the financial institutions such as banking sector. The present era of globalization and industrialization has added a lot of luxury and comfort to human life but has also lead to an alarming situation of huge environmental degradation incorporated with all involved activities. The world today has seen much focus on economic progress, the side effect of this has resulted in climate change, environmental damage. Banks can certainly play an important role between economic growth and environmental protection. Banking of this kind is termed as Green Banking which means combining technology and changing client attitude and habits in dealing with banking business. Green banking initiatives and practices will be useful not only for environment but also lead to cost reductions in banking related activities. In an emerging economy like India environmental management needs to be the key focus area of business fraternity and especially banking industry being the major intermediary. Green banking concept would help banks and firms in emerging economies utilize their limited resources in an optimum way without harming the natural environment and face the global challenge of sustainability in successful manner. To reduce external carbon emissions, banks should finance green technology and pollution reducing projects. Green banking is a part of green initiative taken by stakeholders to save environment. In order to understand the importance of green banking some case studies in Indian context are also discussed in detail. This paper tries to make an attempt on importance of green banking, sites international experiences, opportunities, challenges and benefits of green banking in India.