The world has seen much focus on economic progress and mankind has made giant steps in its journey through time. The side effects of the development process have, however, also been equally enormous – loss of biodiversity, climatic change, environmental damage, etc. Social issues such as, poverty alleviation have also become more important as the world has progressed economically. Banks play an important role in development of Indian economy. The economic reforms totally have changed the banking sector. The banking sector forming a portion of the financial sector primarily works as a financial intermediary generating money supply. The banks should go green and play a pro-active role to take environmental and ecological aspects as part of their lending principle, which would force industries to go for mandated investment for environmental management, use of appropriate technologies and management systems.
Banks that are serious about sustainable development put principles at the heart of decision-making. Fundamental issues, such as, how deals are done and loans are made, in searching proactively for opportunities and even in establishing and adhering to policy frameworks that deliberately preclude involvement in certain investments. For example, an investment in a factory that pollutes heavily (and passes on the costs to the society at large) will generally have a higher financial rate of return than a factory that invests in expensive pollution control technology, as a result showing a lower rate of return.
Green Banking movements such as less paper is good for the environment where customers make paperless deposits, withdrawals and remittances. Going green through-i) No paper statements (your statements and charges summaries will be delivered electronically via Internet Banking) ii) Fewer letters to open (we will call or email you for service reasons wherever possible rather than write to you) iii) No cheque book or paying-in book for your current account. iv) No paper-based marketing. The Bank can concentrate on Nature and environment by Projects in the field of renewable energy (wind energy & hydro-electric projects), organic agriculture across the entire value chain including health food shops and environment technology such as recycling companies and nature conservation projects. As environmental issues gain greater attention, pressure is being placed on all industries, including financial services, to implement “green” initiatives. Resource conservation through cash recycling, double-sided statement print-outs and electromobility.
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