International Journal of Social Science Research (IJSSR)

Role of Banking Sector in Sustainable Development Through Green Banking in India

The banking sector in India has a positive influence on the country’s socio-economic progress and development. As India targets to achieve net zero by 2070, banking sector players have an important role to play in leading the financial services ecosystem towards sustainability. A strong focus on sustainability will quite likely make the banking sector in India a key driver of low-carbon investments and community development projects. The country’s ecological imbalances are the result of increasingly drastic conditions brought about by the new global economy. The necessity for more sustainable ecological balance has been acknowledged by the evolving society in order to provide a better environment for future generations to live in. Keeping this in view, the business are also focusing on environmental sustainability and striving for eco-friendly production methods and techniques. The banking sector, which plays a crucial role in the Indian economy by offering services to both individuals and businesses, is also making significant efforts to transform its operations in order to embrace environmentally sustainable practices. This includes implementing green banking strategies and opening the door for green finance. The objective of green banking is to reduce carbon footprints in its operations by promoting digital transactions and implementing eco-friendly financial practices. Therefore, environmental concerns, which are becoming more and more important, are the main reason why banks are adopting green banking strategies in order to support the green economy. Key Words: Green Banking, Sustainable Development, Eco-friendly, Green Finance