Green Banking in India: A Roadmap to Success

Abstract

Until the end of the twentieth century, green has been just the color of money for banks in India. With the introduction of Automated Teller Machines (ATMs) in 2001, banking sector took initiative towards an environment-friendly banking system. 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, etc. This paper deals with the green initiatives and developments 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. Role of the Reserve Bank of India in formulation of policies on green banking has been focused upon for green growth.