GREEN BANKING IN INDIA: A COMMITMENT TOWARDS THE GLOBAL INITIATIVES

G.REKAAssistant professor,

Department of Commerce,Jamal Mohamed College,

Tiruchirappalli –20.

INTRODUCTION •Climate change is the most complicated issue the world is facing. Across the globe there have been continuous endeavors to measure and mitigate the risk of climate change caused by human activity.

• In the environment friendly society “Go Green” mantra has become relevant in each and every aspect of business. The banks too are adopting this go green mantra to contribute to the cause of environment protection.

• Indian banks also endorse this new form of banking and have taken some crucial steps in this regard.

• Green Banking means ensuring environment friendly practices in banking sector and thereby reducing internal and external carbon footprints.

• The concept of green banking helps to create cleaner and greener future as Green Banking has direct impact on the environment.

OBJECTIVES OF THE STUDY The main objectives of the study are as follows To know about green banking and its associated advantages. To suggest ways to promote green banking in India.To create awareness on the new concept called Green Banking and its benefits to the society.

GREEN BANKING• Green is becoming a symbol of Eco consciousness in the world. According to Indian Banks Association (IBA, 2014) “Green Bank is like a normal bank, which considers all the social and environmental / ecological factors with an aim to protect the environment and conserve natural resources”. It is also known as ethical bank or sustainable bank. Their purpose is to perform banking activities but with an additional plan towards taking care of earth’s ecology, environment, and natural resources including biodiversity.

WHY GREEN BANKING? Consumers are more interested in environment friendly goods and services.The wave of globalization has increased awareness of investors and they now opt for environment friendly investment. Stricter government regulations are in place now.Government agencies demand a greater disclosure.

GREEN BANKING PRODUCTS

Green loans Green credit cards Green CDs Online banking Green saving

accounts Mobile banking

METHODS IN GREEN BANKING

• Go Online• Use of Green Checking Accounts:• Use Green Loans for Home Improvements Power

Savings Equipments• Use of Green Credit Card• Saving of Paper• Mobile Banking• Direct Deposits• Use of Solar and Wind Energy• Online (Net) Banking:

BENEFITS OF GOING GREEN

• Green banking avoids paper work and makes use of online transactions such as Internet banking, SMS banking and ATM banking. Less paper work means less cutting of trees.

• Green ethical banks adopt environmental standards for lending which would benefit future generations.

• Green banks gives more importance to environmental friendly factors like ecological gains thus interest on loan is comparatively less.

• It reduces the expenditure of bank and branch by minimizing the use of paper work and mailing fees.

• Free electronic bill payment services. • Cash back will be credited to all new customers,

opening “green accounts”.• Saving of Energy and Time. • Faster services to customer. • Mitigate the credit risk, legal risk and reputation

risk. • Generate clean and hygienic environment.

CHALLENGES OF GREEN BANKING

Diversification Problems

Startup Face Higher Operating

Cost Reputational Risk Credit Risk

CONCLUSIONS

• This concept of “Green Banking” will be mutually beneficial to the banks, industries and the economy.

• Green Banking has been boosting to improve the environment and promoting economic growth. Banks believe that every small 'GREEN' step taken today would go a long way in building a greener future and that each one of them can work towards to better global environment

• In India there has not been much initiative in this regard by banks and financial institutions. They are not as green as foreign banks. As initially, these commitments will cause a huge financial burden for Indian banks. For effective adoption of green banking, the RBI and the Indian government should play major role and formulate green policy guidelines and financial incentive.

THANK YOU