Green banking practices in India: Opportunities and challenges

Abstract

Green banking practices are gaining momentum in India as financial institutions increasingly acknowledge the significance of environmental sustainability in their operations. This paper delves into the opportunities and challenges linked with green banking initiatives in India. It commences by offering an overview of the concept of green banking and its relevance in the Indian context. The paper explores various opportunities for green banking in India, encompassing the escalating demand for sustainable financial products, regulatory backing, and the potential for bolstering corporate social responsibility. However, despite the presence of these opportunities, the paper also outlines various challenges that obstruct the widespread adoption of green banking practices in India. These challenges include insufficient customer awareness, absence of standardized green banking frameworks, and financial constraints. In conclusion, the paper offers recommendations aimed at overcoming these hurdles and fully realizing the potential of green banking in India.