[12] A STUDY OF THE CURRENT STATUS OF GREEN BANKING IN INDIA

How to Cite the Article: Satish M D (2026), A Study of the Current Status of Green Banking in India. International Journal of Multidisciplinary Research & Review. 5(s2). 103-109.

Abstract

Allowing markets to function within a suitable structure of economic policies and efficient regulations achieves sustainable development best. Banking sectors, particularly, have one of the largest impacts on industrial activity and the economy as an entire. Industries and businesses are susceptible to harsh environmental policies, lawsuits, or consumer boycotts in a globalized economy. As one of the key participants in the industrial sector, the banking industry faces the challenges of liability and credit risks. In addition, the longterm environmental impact could diminish the value of assets and the return on investment for the banks. Therefore, proactive legislative measures which incorporate environmental criteria into credit lending provisions would mitigate ecological harms, support mandated investment into reliable environmentally- friendly technologies, management systems, and appropriate systems that could turn industries green. This paper examines the case for Green Banking, International perspectives are cited, and lessons on sustainable development and banking for India are drawn.We note how the banks and other financial institutions in India, despite playing an active role in India's emerging economy, have attempted to take initiatives for this purpose. With society becoming increasingly aware of ecological issues, business organizations and corporations are trying to change the way they work to maximize sustainability. In banking, ‘green’ means blending operational enhancements, technology, and the changing habits of clients in a banking business. It entails the promotion of Environmentally Sustainable Practices.