ISSN- 2278-4519
RNI : UPBIL/2012/44732
We promote high quality research in diverse fields. There shall be a special category for invited review and case studies containing a logical based idea.


Dr. Daya Ram
Asstt. Professor, Deptt. of Commerce
Bareilly College, Bareilly

Green banking 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 called as an ethical bank. They are controlled by the same authorities but with an additional agenda toward taking care of the earth’s environment/habitats/resources.
The world has seen much focuses on economic progresses and mankind has made giant steps in its journey through time. The side effect of the development process have, however, also been equally enormous losses of bio-diversity, climate change, environment damage etc. Bank is also not the exception for this paper tries to find out the ways to go green through “green banking”. Generally the banks are using online banking instead of branch banking. Paying bills online instead of mailing them. Opening up accounts at online banks, instead of large multibank banks.
Environmentalism is broad philosophy and social movement regarding concerns for environmental conservation and improvement of the state of the environment. environmentalism and environmental concerns are often represented by the color “green” global warming, also called as “green house
effect” is globally issued that calls a global response. The warming effects of certain man-made gas emission such as carbon-dioxide, methane, nitrous oxide and hydro-flora carbon is found responsible for distortion in climate changes. the rapid change in climate will probably be too great to allow many eco systems to suitably adopt since the changes have direct impact on bio diversity, agriculture, forestry, dry land, water resources and human health.
To avoid falling into similar trap, the impulse of “going green” is running faster than blood in Indian incorporation veins. From it giants to luxurious hotels, from automobiles to aviations, from Mumbai funds to bank corporate India is moving fantastically ahead with green initiatives.
Green banking as a concept is a proactive and smart way of thinking with a vision of future sustainability of our only spaceship earth-as design science explorer ‘Richard Buckminster fuller called our earth.
Though even today the New York times, an article on the success/failure of green banking in us has been analyzed for-green banking is making though its profit margin- are far below than the other commercial banks. Our SBI in India has also gene with a operational segment of green banking. Green banking requires a paradigmatic change in thinking about economics, business and finance. Its success would be greater if the world governments started to revise their economic paradigms from beings “monetary economics” to “ecological economics” and begins to transform their accounting principles from purely being financial into ecological/operational energy accounting patterns.

The research methodology used in this study based on primary as well as secondary data. The primary data was collected from the study conducted through telephonic and personal interviews. The study examines major aspects concerned with the green banking; specially structured questionnaires and interviews with employees, of well established banks and general public have been used for survey purpose.
– Basically ethical (green) banking avoids as much paper as possible and rely on online/electronic transactions for processing so that you can get green credit cards and green mortgages. Less paperwork means less cutting of trees.
– Creating awareness to business people about environmental and social responsibility enabling them to do a environmental friendly business practice.
– Green (ethical) banks adopt and implement environmental standards for lending which is really proactive idea that would enable eco- friendly business practices which would benefits our future generations
– When you are awarded by with a loan, the interest of that loan is comparatively less with a normal bank because ethical banks give more importance to environmental friendly factors- ecological gains. Natural resources conservation is also one of the underlying principles in a green bank while assessing capital/ operating loans to extracting /industrial business.

From the empirically study, it is found that following are some of the steps that can be taken for going in green banking:

Online banking is developing concept in young and corporate India. Online banking helps in additional conservation of energy and natural resources. Online banking includes- a. paying bills online, b. remote deposit,
c. online fund transfer and d. online statements. It creates saving from less paper, less energy, less expenditure of natural resources from banking activities. Customers can save money by avoiding late payments to fees and save time by avoiding to standing in the queues and paying the bill from home online.
It is an innovative steps towards paperless “green banking “for deposit, withdrawals and funds transfers within the bank. The customer needs not fill ups any pay-in slips or draw cheque for depositing or withdrawing money from their accounts. The customer should bring his/her pin (personal identification number)
– At the green channel counter, there is a transaction processing device (similar to point of sale of machine) available at the single window operator (swo)
– Customer has to swipe his/her atm card on the machine
– Customer is asked by the machine to select the type of transaction, viz., cash deposit, cash withdrawal or fund transfers (with sbh)
– Enter the amount of transaction and confirmation it.
– Enter the pin
– The transaction gets transferred to the terminals of swo who pays / receives cash and transaction gets completed.
– The customer will be provided with a machine generated printed receipts for the transaction
– Similar steps as displayed on the screen have to be followed in respect of funds transfer within the bank.
– There is no need to remember 11 or 16 digit account number or carry passbook. Only the ATM cum Debit card and pin are needed
– Customer can use the green channel counter without standing in queue and without taking the token. He/she may simply walk up to the counter, swipe their atm card and execute the transaction
– In S.B.I. one can transact up to Rs. 20,000/- per transaction and 8 to 10 transactions in a month.
– Odd amount (in round rupees) transactions are possible.
Banks can directly contribute to controlling climate change and as an initiative step they intend to start a campaign to replace all fused GSL bulbs, in all owned premises offices and residential. Banks can also make a feasibility study to make rain water harvesting mandatory in all the Banks owned premises. In mandatory in all the Banks owned premises. In December 2009 Indusind Bank inaugurated Mumbai first solar-powered ATM as part of its “Green Office Project” campaign titled “Hum our Haryali”
Improvements :- The Ministry of Non-renewable Resources in association with some nationalized and scheduled Banks undertook an initiative to go Green by paying low interest loans to the customers who would like to buy solar equipments. The rate of interest is as low as 4% P.A. Before you undertake a major home improvements projects study if the projects can be done in an eco-friendly manner and if you might qualify for a green loan from a Bank Green loan are perfect for energy saving projects around the house.
The new Green Home Loan Schemes from SBI, for instance, will support environmentally friendly residential projects and offer various concessions. These loans will be sanctioned for projects and rated by the Indian Green Building Council (IGBC) and offer several financial benefits 5% concessions in interest rate and processing fee waivers.
Using solar and wind energy is one of the Nobel cause for going Green. State Bank of India (SBI) has become the first bank in the country to venture into generation of Green power by installing windmills for captive used. As part of its Green Banking initiatives, S13I has installed 10 Windmills with an aggregates capacity of 15 M W in the states of Tamil Nadu, Maharashtra and Gujarat.
6. MOBILE BANKING:- It is tricky, on the one hand, it is great to have the ability to check balances, transfers funds or pay bills from your mobile phones. One the other hand, it saves time energy of the customers. It also helps in reducing use of energy and paper of the Bank. Most of the Indian Banks introduced this paper less facility.
Green ethical Banks adopt and implement environmental standards for lending, which is really a protective idea that would enables eco- friendly business practices which would benefits our future generations. Natural resources conservation is also one of the underlying principles in a green bank while assessing capital- operating loan to extracting / industrial sector.
The value proposition for corporation to go green includes many of the same issues as that for individuals consumers but on a much large scope and with additional concern corporation may share desire to reduce carbon footprints and enhances security by eliminating paper waste , but they are also extremely concerned with.
Overall green banking is really a good way for people to get more awareness about global warming each businessman will contribute a lot to the environment and make better place this earth to live. Hence to green banking until a few years ago most tradition bank did not practice green banking or actively seek invests opportunities in environmentally friendly sector of business, Only recently have these strategies become more prevalent not only among smaller alternatives and cooperatives banks but also among diversified financial service provider asset management firms and insurance companies although these companies may differ with regard to their stated motivations for increasing green product and services (e.g. enhance long term growth prospectus or sustainability principles on which a firm is based) the growth variations and innovations behind such developments indicates that we are in the midst of a promising drive towards integrating green financial products into mainstream banking.
References :
1. Ray vareen ‘a green dream” 4 p Business and Marketing, 21 Nov. to 4 Dec. 2008.
2. Leslie d Monte, It’s time for Green Banking, Business Standard, may 21, 2010.
3. Ritwik mukherjee, SBI launches green policy for paperless banking, Financial Chronically, august27z, and 2010.
4. Banldng and financial market in Maharashtra 1947 to 2007 by niti basin new century publication, New Delhi, June 2007 edition.
5. Jeucken {2001} “Sustainable Finance Banking, the Finance Sector and the Future of the Planet. London; earth scan.

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