The document discusses green banking in India. It introduces the topic and explains the reasons for green banking like changing consumer behavior and stricter government regulations. It outlines the benefits of green banking such as avoiding paperwork and loans at lower rates. Green banking products mentioned include green loans, green credit cards, and online banking. Methods of adopting green banking discussed are paperless statements, online bill payments, and reward debit/credit cards. The document provides an example of the State Bank of India's green initiatives and concludes that green banking provides opportunities for Indian banks but also financial burdens, so the government should support guidelines and incentives for effective green banking.

1. Green banking

2. 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. Many countries the world
over have made commitments necessary to mitigate climate change. India
has committed to cut its domestic carbon intensity by 20-25 percent from
2005 levels, by the year 2010.

3. Why green banking
Change in the consumer behaviour
Stricter government regualations
Government agencies demand a greater
disclosure

4. Benefits of
Green
Banking
Avoids Paper Work
Creating Awareness to Business
People about Environment
Loans at Comparatively Lesser
Rates
Environmental Standards for
Lending

5. Green banking products
Green loans
Green credit cards
Online banking
Green saving accounts

6. Methods
Adopting
Green
Banking
Paperless Statements
Use Direct Deposit
Online Bill Payments
Reward Debit and Credit Cards
Net Banking

7. Initiative Taken by Indian Banks
(SBI) has become the first bank in the country to venture into generation of
green power by installing windmills for captive use. As part of its green
banking initiative, has installed 10 windmills with an aggregate capacity of 15
MW in the states of Tamil Nadu, Maharashtra and Gujarat. It has planned to
install an additional 20 MW capacity of windmills in Gujarat soon and touch
100 MW power generation through windmills within five years, windmills are
set up with a definite objective of reducing the dependence on the polluting
thermal power and not on purely economic or business considerations. At
present, the bank consumes 100 MW of power per year.

8. Suggestions that can be Adopted by Banks to Encourage Green
Banking
Construct a
Website and
Spread the News.
Educate through
the Bank’s Intranet
and Public
Website.
Participate in
Events.
Set up outlets to
promote green
business.
Communicate
through the Press.
Disseminate info
through Leaflets.
Social
Responsibility
services done by
banks.
Making it a part of
annual
environment
report.

9. Conclusion
• India’s growth story and commitment to cut its carbon intensity by 20-25 percent
from 2005 levels by 2020 provides tremendous opportunities for Indian banks from
funding sustainable projects to offering innovative products and services in the
areas of green banking. Initially, these commitments to environmental and social
guidelines will cause a huge financial burden for Indian banks. For effective green
banking, the RBI and the Indian government should play a pro active role and
formulate a green policy guidelines and financial incentives. The survival of the
banking industry is inversely proportional to the level of global warming. Therefore,
for sustainable banking, Indian bank should adopt green banking as a business
model without any further delay

10. References
• www.foxbusiness.com
• www.greenbank.com
• www.infocrystal.com
• www.moneyrates.com
• www.scribd.com
• www.wikipedia.org
• www.investorwords.com
• “The Indian Banker”, monthly journal published by Indian Banks Association edition
February 2010.