The Central Bank of India as an Example of the Green Revolution in the Banking Sector

View Sample PDF

Author(s): Shubhendu Shekher Shukla (SRM Business School, Lucknow, India), Saurabh Bajpai (Babu Banarasi Das University, India), A. Pankajam (Avinashilingam Institute for Home Science and Higher Education for Women, India), Ankur Gupta (Vaish College of Engineering, India), Vivek Veeraiah (Sri Siddharth Institute of Technology, Sri Siddhartha Academy of Higher Education, India), Sabyasachi Pramanik (Haldia Institute of Technology, India)and Soma Bag (Asadtala Nivedita Kanya Vidya Math, India)
Copyright: 2024
Pages: 19
Source title: Recent Developments in Financial Management and Economics
Source Author(s)/Editor(s): Abdelkader Mohamed Sghaier Derbali (Taibah University, Saudi Arabia)
DOI: 10.4018/979-8-3693-2683-1.ch010

Keywords: Accounting and Finance / Business & Management / Business Science Reference / Economics & Economic Theory

Purchase

View The Central Bank of India as an Example of the Green Revolution in the Banking Sector on the publisher's website for pricing and purchasing information.

Abstract

The purpose of this chapter is to illustrate the State Bank of India's (the nation's central bank) involvement in advancing green banking practices in day-to-day operations. India has been dealing with severe environmental problems despite having lower per capita CO2 emissions than the rest of the world. The State Bank of India (SBP) released the green banking guidelines (GBG) in 2017 in response to the worsening environmental conditions. The guidelines aim to change the economy of the nation and recognize the financial sector's contribution to the transition to a low-carbon and climate-resilient economy. It aids in raising awareness among investors and the banking sector about the need to create sustainable green development investments, operations, infrastructure, and goods. The State Bank of India's comprehensive evaluation of the GBG is to examine and evaluate the GBG and pinpoint the main obstacles facing its stakeholders, including commercial banks and other financial organizations. The central bank's activities suggest that the GBG policy is a paradigm change for the banking sector and will likely have a significant effect on the economy. Furthermore, the rules delineate the roles, oversight, and structure for implementing the GBG and provide three primary topics for consideration. These include personal impact minimization, green business assistance, and environmental risk management. The central bank's involvement in putting the GBG into practice for all commercial banks is also covered in this chapter. Through GBG, the central bank of India mandates commercial banks, requiring the board of the banks to approve environmental exposure limits for various industries and sectors. This is projected to result in varying levels of green practices across various projects. The GBG may need the hiring of a sizable workforce, which would raise banks' estimated service costs. All projects and the sectors/industries they belong to need to have clear requirements and hazards related to the environment. In order to efficiently oversee and carry out the GBG, the SBP has taken a number of actions. For example, it plans to engage with international organizations to create a standard framework for consistent environmental risk management in the banking sector. Comparably, the banks have made certain moves, such as setting up green banking offices, hiring the necessary personnel, creating a checklist for identifying environmental risks, offering advice services for the development of green businesses, etc. A few of them are also the ones that started the social and environmental management system.

The IRMA Community

Research IRM

The Central Bank of India as an Example of the Green Revolution in the Banking Sector

Purchase

Abstract

Related Content

IRMA Sponsors