Introduction Green banking is like a normal bank, which considers all the social and environmental factors.

. Green banking as a term covers several different areas, but in general refers to how environmentally friendly your bank is, and how committed to green and ethical policies they are. It aims to protect the environment and it is controlled by same authorities as what a traditional bank do.

Difference between green banking and a normal bank

The above given are the main differences between a green bank and a regular bank. There are also several differences.

The Role of Green Banking in India Indias is the worlds sixth largest and second fastest growing country in terms of producing green house gases. Delhi, Mumbai and Chennai are the three of the worlds ten most polluted cities. The banking operation and investment by financial institutions should take care of environmental management of these polluting industries.

Aims of green banking Preserve and effectively use natural resources. Reduce and recycle waste at source. Offer environmental-friendly products. Increase resource savings and energy efficiency. Increase the environment awareness of its employees, suppliers and customers.

Benefits of Green Banking It avoids as much as paper work, you get go green credit cards, go green mortgages and also all the transactions done through online. They follow environmental standards for lending, which is really a good idea and it will make business owners to change their business to environmental friendly which is good for our future generations. When you are awarded with a loan, the interest of that loan is comparatively less with normal banks, because ethical banks give more importance to environmental friendly factors they do not operate with high interest.

Green banking in State Bank of India State Bank of India has adopted a Green Banking Policy with an objective of contributing towards the fight against the adverse climate change. One of the initiatives approved by the Board for this purpose is incentivizing customers who go in for Green Projects. At present State Bank of India the only Bank in the country supporting the cause of Green Buildings by offering a 5% concession in margin, 0.25% concession in interest rate.

Small scale sector in India SSI constitute major portion of Indian industry. Small scale industries emit pollutants to the environment which are dangerous for the surroundings. These industries on account of their financial constraints are unable to install the necessary equipment to meet the emission standards prescribed by the competent authorities.

Steps of Green banks to control pollution of SSI environmental pollution status of SSI. environmental Clearance from the appropriate authorities. steps undertaken or proposed for disposal of solid, liquid and gaseous wastes.

Conclusion Green Banking if implemented sincerely will be effective for the polluting industries that give a pass by to the other institutional regulatory mechanisms. It is time now that India takes some major steps to gradually adhere to the equator principles-guidelines that use environment-sensitive parameters, apart from financial, to fund projects.