GREEN BANKING IN INDIA: A STUDY FOR SUSTAINABLE DEVLOPMENT.

Abstract

The global warming is becoming the national as well as international problem; it hampers on destroying the natural resources. For the controlling of global warming problem there should be focus on green and ecofriendly initiatives by all. Banking sector is generally considered as environmental friendly sector in terms of the pollutions and emissions. The Indian banking business is one of the largest banking business in the world which caters to the needs of different strata of society. The development of economy in all sector have the very bad impact on environment. Until the end of twentieth century, green was just the color of money for banks in India. With the introduction of Automated Teller Machines (ATMs) in 2001in the banking sector of India, banking sector took initiative towards an environment-friendly banking system. Green banking means combining operational improvements, technology and changing client habits in banking business. There is need to banks should go for green and play a pro-active role to care environmental and ecological aspects as part of their lending principle, which would force industries to go for mandated investment for environmental management. Thereafter, many initiatives were undertaken viz. use of eco-friendly papers, solar-powered ATMs, green projects, energy efficiency practices, workplace health and safety, organizing awareness campaigns, online banking systems, etc. This paper deals with the green initiatives and developments took place in the banking sector in India and sites international developments. It sites opportunities for banks in areas like carbon credit business, green financial products, core banking solutions, integrated IT environment, etc. that can lead to development in green area and overall environment. The Role of the Reserve Bank of India in formulation of policies on green banking has been focused upon for green growth.