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Considering the global level acceptance for Green Banking, Indian Banks are also looking forward to the
initiatives on the same ground. Indian also wants to make itself included in the league of America, Japan,
Australia, etc., in the stature of Green Banking. Basically, Green Banking Products are those whose prime
objective is to conserve energy to support environmental sustainability. The major objectives of the study is to
identify the present scenario, awareness amongst users, method of adoption of green banking practices in
Shivamogga, customers’ perception and preferences and the areas of improvement wherever required in the
study is highly needed. Both primary and secondary data were used for the study. Non-Probability Convenience
Sampling method was selected for collecting the data. The findings is that, majority of the customers stated that,
green banking is essential in the present scenario. More than 70 percent of the respondents were using ATM’s
and M-Banking services as green banking products. Almost all the customers are aware of the green banking
practices adopted in public and private sector banks. Further it can be concluded that, Customers have created
their awareness of green banking from bank websites and Friends/Relatives, while it may be concluded that Print
Advertisements or Radio commercials are not that much effective. The Majority of selected customers feel it is
required in current scenario.
green banking, green products, green services
Green Banking is different from traditional banking as it is the concept of promoting sustainable development
in the country. Green Banking is the new phenomenon in the financial world which concentrates on
environmental and socially responsible investing. In the era of globalization, global warming is becoming one
of the major issues across the world. The effects of global warming be responsible for the destruction of climate
change which has impacted the land, water, and human resources of the world. As people of society are becoming
more concerned about the depletion of natural resources, organizations have started performing their corporate
social responsibilities. They have started modifying their working techniques to maximize greenery and to
reduce the impact of their activities on the environment.
Green Banking is also called ethical banking, which aims to protect the environment and reduce the carbon
footprint from banking activities. It encourages banks to carry out environment-friendly investments by
combining its operational improvements and technology know-how in banking business activities. Green
Banking has started priority lending to those industries that are already green or making efforts to go green. The
aim of going green is to increase energy efficiency and to use biodegradable products. The performance of banks
largely depends on the performance of their clients. The banks have to diligently check that the customer's
projects are meeting all the legal and environmental compliances, as any failure can result in nonperforming
assets for the banks.
The concept of going green is new in India and has been adopted by Indian banks in many forms. Banks have
started providing services of online banking, mobile banking, green loans, E-statements, etc. They have been
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promoting their services 24/7 to consumers. Banks have started providing various services like online opening
of bank accounts, online payment of bills, online investment, use of ATMs, etc. As the concept of Green Banking
is at a growing pace in India, it has also entered in the State of Karnataka. Many Banks, both Private and Public
Sector Banks in Karnataka, have started providing Green Banking products and services to their customers and
have started contributing to the concept of ethical banking. This study provides information about the Green
Banking activities carried out by various banks in the Shivamogga district. This study also includes awareness
and perception about Green Banking activities among customers and bank employees of the state.
Green banking means promoting environmentally- friendly practices and reducing your carbon footprint from
your banking activities. This comes in many forms:
1. Using online banking instead of branch banking.
2. Paying bills online instead of mailing them.
3. Opening up account at online banks, instead of large multi-branch banks.
4. Finding the local bank in the area that is taking the biggest steps to support local green initiatives.
Banks offer higher rate on commercial deposits, money market accounts, checking accounts
and savings accounts if customers opt to conduct their banking activities online.
: Banks offer green mortgages with better rates or terms for energy-efficient houses. The
savings in monthly energy bills can offset the higher monthly mortgage payments and save money in the long
run.
: means giving loans to a project or business that is considered environmentally sustainable.
These cards offer an excellent incentive for customers to use their green card for their
expensive purchases.
Customers can earn higher checking account rates if they meet monthly
requirements that might include receiving an electronic statement, paying bills online or using a debit or checking
card.
In case of green saving accounts, banks made donations on the basis of the savings
made by customers. The more they save, the more the environment benefits in the form of contributions or
donations done by banks.
: These new age banking forms include less paperwork, less mail, and less
travel to branch offices by bank customers, all of which have a positive impact on the environment.
Governments, corporations, and individuals must work together to promote green banking practices in Indian
banks in order to reduce these numerous types of environmental deterioration. Governments need to develop
rigorous legislation, businesses need to add environmental protection regulations more strictly, and people need
to be self-aware to protect the environment around them. Banks have been massively utilizing lighting, air
conditioning, electrical equipment, IT, and significant paper wastage. By using renewable energy, automating
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processes, and taking other steps, the resulting internal carbon footprint can be decreased. On the other side,
banks can lower external carbon emissions by funding initiatives and businesses that use green technologies and
aim to minimize pollution. Every bank should include green practices in its operations, organizational
frameworks, business endeavours, and financing processes. Green banking is a proactive strategy for long-term
sustainability; however Indian banks lag behind their counterparts in developed nations in this area. Banks are
working hard to explain green, and there is a probability that clients may accept the potential that the bank team
has created. Both public and private sector banks have adopted a number of actions to lower carbon emissions.
Banks are aware of the difficulties in implementing green banking nationwide.
This era of globalization, along with industrialization, has helped individuals move towards a more comfortable
and easier lifestyle. On the one hand, where it is easing out the work of people, it is posing a great threat to the
environment. The banking system of India has reached to a level where competition and profit-earning have
become a prime motto. In this race to become the best, they had forgotten their social responsibility. Now, after
strict regulations from the government's side for protecting the environment, the banking industry has realized
the drawbacks in their system and has toiled to find out the possible solutions for them. One such step forward
in this direction is Green Banking. This idea originated in the USA and has travelled all around the world in a
very short span time. The various drawbacks like excessive use of paper, light, and various other resources in
the traditional banking industry, are now narrowed down to the minimal possible level. Green Banking reduces
the level of carbon emissions in the environment majorly as there would be less need for setting up branches in
every location. For example, in a city, if presently there are 10 branches of a particular bank then it can be
reduced to 5 with the help of Green Banking. As all the transactions are to be processed online which zeros down
the need to visit the branch physically. Green Banking not only includes paperless transactions but also focuses
on matters of environmental safety, financing projects and organizations that work for saving and rebuilding
environmental damage. Green banks are increasing the trend of energy-efficient houses by financing such
projects at discounted rates. This not only benefits the clients but also reduces the excessive burden on the
employees. The Go Green concept leads to controlled use of paper; in turn, fewer numbers of trees would be cut
down for making paper.
The government is also taking up initiatives for attracting citizens towards Green Banking. One of the major
examples is the Union Budget of 2017-18 that was recently presented by the Finance Minister, Mr. Arun Jaitley.
He proposed to waive the service charge for booking e-tickets. Thus, people are not required to pay any extra
amount while booking tickets online, which motivates them to use more and more online banking facilities.
Again, the concept of digitization, after the introduction of demonetization, put forward by our PM Mr. Narendra
Modi, is a way of moving the Indian Economy towards paperless transactions. Along with the environmental
causes, there are various other advantages of adopting Green Banking. The emergence of the cashless or plastic
economy would result in a reduction of unethical practices like robbery or contract killing. The simple reason is
that the money would have to be transferred online which would attract the attention of authorities and require
an explanation for the amount transfer. It would bring down the index of crime manifold.
The Go Green concept is not limited only to the banking industry, but its scope of operation is much wider. The
other industries are also adopting this technique to contribute to a positive change in the environment. Like, the
automobile industry is bringing the trend of solar vehicles or a more fuel-efficient mode of transport. Toyota has
launched Prius, a hybrid vehicle, the most fuel-efficient car in the category. The computer industry is one of
those segments of the economy that produces maximum waste, but the company Dell has launched a program
of recycling of its products. It welcomes the customers to return the old Dell products as well as other companies
products for safe disposal as well as recycling. Thus, it is identified that the Go Green concept is not only related
to making progress in the banking sector alone, but its influence is seen in every sector of the Indian economy
as well. The organizations, clients, and government are all trying to make the environment much healthier by
eliminating the practices that are harming the environment in any way.
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:
In fact the perception and expectation of the customers have undergone a vast change with the availability of
retail banking services at their doorsteps with the help of technology and they expect to complete all their banking
transactions from a single place.
The study identifies the products and services usage in terms of customer convenience patterns. The reason for
choosing this topic is to analyze customer awareness towards the usage of different green banking services
provided by public and private sector banks and to suggest strategies for using these services in order to make it
more competitive and customer-friendly. The study will help private and public sector banks to reorient their
marketing strategies for better reach among customers in order to compte with its rivalry with technology as its
core competence.
in their article A Study on “
The success lies in making sure that those products are utilized in a proper
way. And he also said that Green Banking is the corporate social responsibility of every bank. Along with
the focus on the green banking initiatives the bank should also take care of its lending policies so that the
customers are encouraged to carry out not only their banking transactions but also their business
transactions in an environmentally friendly manner. Banks must continuously be involved in introducing
innovative products for their benefit and the society as well.
In his study the “
banking avoids as much paperwork as possible and relies on online/electronic
transactions for processing so that we get green credit cards and green mortgages. Less paperwork means
less cutting of trees. It also involves creating awareness among banking business people about
environmental and social responsibility enabling them to do an environmentally friendly business practice,
and green banking as a concept is a proactive and smart way of thinking with a vision for the future
sustainability of our only Spaceship Earth –,as design science explorer Richard Buckminster Fuller called
our Earth.
In their study covered “Green Banking in India’,
Discussion paper Series” the green banking sector is one of the major stakeholders in the industrial sector;
it can find itself faced with credit risk and liability risk. Further, environmental impact might affect the
quality of assets and also the rate of returns of banks in the long run. Thus, the banks should go green and
play a proactive 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.
In their study on green banking refer to the initiatives taken by
the banks to encourage environment-friendly investment. Green banking as a concept is a proactive and
smart way of thinking towards future sustainability. In the emerging economies, it is very important for the
banks to be proactive and accelerate the rate of the growth of the economy. Banks need to apply the morality
of sustainability and responsibility to their business model, strategy formulation for products and services,
operations, and their financing activities and become stronger.
In their research article, Green Banking
practices in India explores that, nowadays almost all countries are changing their conventional approach to
an environmentally friendly approach in fields. Banking is not an exception to it. As the growth engine of
the economy, commercial Banks can be the change agent by adopting Greener Banking practices. Adoption
of Greener Banking practices will be useful in many ways, like an increase in operational efficiencies, a
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue VIII August 2025
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lower chance of manual errors and fraud, and cost reductions in banking activities. The main objective of
this paper is to study how the Indian Banking sector leader i.e., STATE BANK OF INDIA responds to
environmental changes and to provide an overview of its action given Green Banking adoption.
Green banking encourages environmentally beneficial behavior while lowering internal carbon emissions and
external carbon emissions from the banking industry. Additional names for green banking include ethical
banking and sustainable banking. The globe has experienced significant economic advancement, which has
had negative repercussions on environmental destruction, biodiversity loss, and global climate change, among
other things. Green banking serves as a link between the economic system, environmental preservation, and
social harmony. Based on the past studies and review reports there was no comprehensive study on the customer
point of view towards green banking practices in the area of Shivamogga district. So that it is decided that there
is a necessity and importance to study Green banking practices with particular reference to the private sector
and the public sector within Shivamogga district. This study examines the idea of green banking products
among customers in a Bank with a variety of educational backgrounds and income levels. This report includes
specific advice for firms that are required to transition from an inactive to active approach to green banking in
India.
1. To study the concept of Green Banking.
2. To assess the awareness level of customers regarding Green Banking.
3. To find out the flaws in the traditional banking system and the necessity to adopt a Green Banking
approach.
The research methodology used in this study based on primary as well as secondary
data. The primary data have been collected through a questionnaire and the secondary data have been collected
from websites of various banks and journals related to banking.
TheSample size is 50.
The General public of the city and sampling units are chosen on the basis of convenience
sampling.
Table No.1: Gender of the respondents
1
Male
36
72
2
Female
14
28
3
Others
0
--
Total
50
100
The above table 1 shows that , out of 50 respondents 36 are Male, 14 are female and nil respondents are of
Other.
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Table No. 2: Marital status of the respondents
1
Married
28
56
2
Unmarried
22
44
Total
50
100
The above table 2 represents that, 28 respondents are married and the remaining 22 respondents are un married.
Table No.3: Age of the respondents
1
18-25
5
10
2
26-35
12
24
3
36-45
18
36
4
46-55
13
26
5
Above 55
2
4
Total
50
100
The above table 3 indicates that, among 50 respondents 5 respondents are belonging to 18-25 age group, 12
respondents are belonging to 26-35 age group , 18 respondents belong to 36-45 age group, 13 respondents are
related with 46-55 age group and remaining 2 respondents are belonging to above 55 age group.
Table No.4: Educational status of the respondents:
1
Primary education
3
6
2
Secondary education
27
54
3
Under graduate
15
30
4
Post graduate
5
10
Total
50
100%
The above Table 4 suggests the academic popularity of the respondents. The instructional popularity of the
respondents is divided into 4 groups. They are primary education, higher education, below graduate and
postgraduate.
Among 50 respondents, 3 respondents have finished their primary education, 27 respondents have finished
secondary education,15 respondents have completed their graduation and 5 respondents have completed post-
graduation.
Table No. 5: Mode of Digital Payment for Green Banking Initiative Activity
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1
E- cash
174
2.175
V
2
E- Banking
444
5.55
I
3
Debit card
349
4.363
II
4
Credit card
239
2.988
III
5
Smart card
164
2.05
VI
6
E -wallet
154
1.925
VII
7
Paytm
192
2.4
IV
8
Others
57138
1.725
VIII
Table 5 suggests that the mode of virtual charge used by the customers for digital charge activity. The Majority
of the respondents used e-banking/internet banking for virtual charge pastime, the researcher offers first rank
with an imply rating of 5.55, 2nd rank is given to debit card used by the respondents with the suggest score4.363,
3rd rank is given to credit card utilized by the respondents with the imply rating 2.988, fourth rank is given to
Paytm utilized by the respondents with the mean score 2.4th and 5th rank is given to e-cash utilized by the
respondents with the mean score 2.A hundred seventy-five, 6th rank is given to clever card utilized by the
respondents with the mean rating 2.05, 7th rank is given to e-pockets utilized by the respondents with the imply
rating 1.925 and 8th rank is given to other mode of price used by the respondents with the mean score 1.725.
Majority of the respondents are the use of e-banking/net banking mode of digital price for inexperienced banking
initiative interest.
Table No. 6: Awareness Level Among Public
ATM
49
98
Tele banking
38
76
Mobile banking
26
52
SMS Banking
12
24
E-Statement
48
96
Green mortgages
5
10
Green home loans
8
16
Green cards
16
32
Green financing
12
24
Green certificate
18
36
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The Table 6 presents data on the awareness of various green banking products and services among respondents,
measured by frequency and percentage. The highest level of awareness is seen for ATMs, with 98% of
respondents recognizing them as a green banking service. This is followed by E statement, which is known to
96% of the participants, indicating a moderate level of digital banking awareness.
1. The Majority of respondents are comes under male category(72%)
2. The majority of the respondents are comes under married category (56%).
3. Majority of respondents are come under the age group of 36-45 years (36%)
4. Majority of the respondents used e-banking/internet banking for virtual charge pastime.
5. The highest level of awareness is seen for ATMs(98%).
Utilize social media effectively to reach and engage younger audiences interested in sustainability and
green banking.
Provide clear information about the benefits of green banking to enhance customer understanding and
interest.
Collaborate with educational institutions to raise awareness of green banking among students and future
customers.
Regularly seek customer feedback to refine green banking offerings and align them with client needs and
preferences.
Create community programs that promote sustainability to enhance the visibility and impact of green
banking initiatives.
Expand the variety of green banking products to attract a broader audience and cater to diverse customer
needs.
India’s growth account and obligation to cut its carbon intensity by 20-25 percent from 2005 levels by 2020
provides tremendous opportunities for Indian banks from funding sustainable projects to offering innovative
products and service in the areas of green banking. Initially, these commitments to environmental and social
guidelines will cause a huge financial burden for Indian banks. For effective green banking, the RBI and the
Indian government should play a proactive role and formulate a green policy guidelines and financial incentives.
The survival of the banking industry is inversely proportional to the level of global warming. Therefore, for
sustainable banking, Indian bank should adopt green banking as a business model without any additional
postponement. This concept of “Green Banking” will be mutually beneficial to the banks, industries and the
economy. Not only “Green Banking” will ensure the greening of the industries but it will also facilitate in
improving the asset quality of banks in future.
1. G. Prakash Raj and A. PappuRajan (2017), ‘A Study on The Customer Awareness on Green Banking
Initiatives’, International Journal of Finance Research Review, Vol.no. 5, Issue 7, Pp 54- 65.
2. Guru Prasad Rao Y (2015), ‘Contemplating Customers and Bankers Outlook on Green Banking’,
International journal of science research and technology, Vol no. 1: Issue-1, Pp 22-29
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue VIII August 2025
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3. Sahoo Pravakar and Bibhu Prasad Nayak (2016), ‘Green Banking in India’, Discussion paper Series No.
125/2008 Institute of Economic Growth University of Delhi, Delhi-1100071.
4. C.Saravanaselvi and G.Sangeetha (2016), ‘Green Banking in India’, Primax International Journal of
Commerce and Management Research, Vol.no. 4, Issue 3, Pp 119-121.
5. Mr. Jayantha Kumar Bihari and Laxmipriyaswayin [pp125-131] [2020] Green Banking practices in India:
A case study of state bank of India.
