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should be evaluated in terms of environmentally impor- ment opportunities in environmentally-friendly sectors or
tant areas including wetlands, forests, grasslands and businesses.
other natural habitats.
Only recently have these strategies become more prevalent,
Banking institutions need to evaluate the value of real
not only among smaller alternative and cooperative banks,
property and the potential environmental liability asso- but also among diversified financial service providers, asset
ciated with the real property. Therefore, the banks
management firms and insurance companies.
should have right to inspect the property or to have an
Educate through the bank's intranet and public
environmental audit performed through the life of the websites.
loan.
Construct a website and spread the news.
Banks also need to monitor post transaction for the ideal
Participate in events and communicate through press.
environmental risk management program during the
Setup outlets to promote Green business.
project implementation and operation. There should be
physical inspections of production, resources, training Carbon foot print reduction by mass transportation and
and support, environmental liability, audit programs etc. energy consciousness.
The next round of evaluation includes loan structuring, Impart education through E- learning programs.
credit approval, and credit review and loan manage-
ment. Further banks have annual audits, quarterly en- Conclusion:
vironmental compliance certificate from the indepen- Possible policy measures and initiative to promote green
dent third party and also from the government. banking in India has become the need of the hour. In a rap-
idly changing market economy where globalization of mar-
Further the banks can introduce green bank loans and
kets has intensified the competition, banks should play a pro-
products like:
active role to take environmental and ecological initiatives.
Investing in projects related to recycling, farming, The banking and financial sector should be made to work
waste disposal through reduced interest rates on for sustainable development.
loans to home owners for installing a solar energy
system. As far as green banking is concerned, Indian banks are run-
ning behind time and it is the need of the hour to think about
Providing option for customers to invest in environ-
it seriously for the sustainable growth of the nation. Green
mentally friendly banking products.
Banking concept will be beneficial for both the banking in-
Investing in resources that combine ecological con- dustries and the economy. Not only "Green Banking" will
cerns and social concerns. ensure the greening of the industries but it will also facili-
tate in improving the asset quality of the banks in future.
Measures to encourage Green Banking:
Banks are responsible corporate citizens. Banks believe that References:
every small "GREEN" step taken today would go a long way 1. Green Banking: An IDRBT publication August 2013.
in building a greener future and that each one of them can 2. https://www.firstgreenbank.com/about/our-story ac-
work towards better global environment. The purpose is to cessed 3rd July 2016.
provide cost efficient automated channels and to build 3. http://www.coalitionforgreencapital.com/whats-a-green-
awareness and consciousness of environment, nation and bank.html accessed 3rd July 2016.
society. 4. Saritha Bahl., "The role of Green Banking in sustainable
growth," International Journal of Marketing, Financial
Green banking is really a good way for people to get more services and Management Research, vol.no.2, February
awareness about global warming; each businessman will 2012, pp.28,34.
contribute a lot to the environment and make this earth a 5. Ashis Kumar Chaurasia., "Green Banking practices in
better place to live. Until a few years ago, most traditional Indian Banks," Journal of Blue Square Publishing House,
banks did not practice green banking or actively seek invest- vol.no.1, Issue 1,February 2014,pp. 43-53.
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