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Role of Banking System in Green Finance in the Context of India: An Analysis

To achieve the goal of SDG (Sustainable Development Goal) by 2030, India took many initiatives to promote green economy which include Green Finance. Green Finance is a new concept which comprises with different range of products and services to give opportunities to environmental friendly projects and infrastructure developments. To fulfil the objective of fast economic growth without compromising the climate, banking institutions are playing an important role. These kinds of banking strategies are coined as Green Banking. Green Banking promotes eco-friendly practices to reduce carbon footprint and also sensitise their customers with the help of different schemes and initiatives. But, as we know in a country like India that lacks in proper infrastructure and management the objectives of green banking can’t not be attained as easily. All the issues and challenges faced by the government and financial institutions have been discussed in this paper along with the important and different strategies adopted by them. The study is based on secondary data and literature review.