Green banking-need of the hour

Change is the need of hour to for survival in all spheres. Today every sector of the world economy is talking about their approach towards protection of the environment and the financial sector moving towards their “going green” approach in no exception. The world has neglected environmental issues and it has led to huge losses in terms of climate change, biodiversity, environmental degradation, rising green house gases, loss of forests and water resources, and so on.

Green Banking, as defined by Institute for Development and Research Technology, is an umbrella term referring to practices and guidelines that make banks sustainable in economic, environment, and social dimensions. It aims to make banking processes and the use of IT and physical infrastructure as efficient and effective as possible, with zero or minimal impact on the environment.

Green banking is a natural trend that arose from the shift from profit only, to a new goal that lies in equilibrium between nature, profit and people. Green growth is set as one of the top priorities. This paper will present the most important green financial products and its benefit to the society and the concept of green banking would be discussed in detail