Green Banking: New Economic Reform in Indian Banking Sector.

The economic reforms have totally changed the banking sector. As world is facing the problem arising from global warming the banking sector has to realize the need of going green. The bank should go green and play protective 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 technology and management system. It means promoting environmental-friendly practices and reducing carbon footprint from banking activities. Green banking can benefit the environment either by reducing the carbon footprint of consumers or banks. . Through the mode of online banking a bank or a consumer can conserve paper and benefit the environment. There are many ways to follow the green banking in Indian Banking system.
• Online system: paying online bills, remote deposits, online fund transfer, converting checking accounts to online banking.
• Green Money Market Accounts – converting savings accounts to online banking.
• Green card holders: Green card allowed cardholders to earn rewards or points which can be redeemed or contribution to eco-friendly charitable organization.
• Green Mortgages & loans – lower loan rates for energy-efficient houses and eco-friendly industries.