What is Green Banking?
In this article, we can understand what is Green Banking? Green bank is different from other banks. The green bank has come into existence to protect the environment. This reduces environmental degradation, as the paper is used sparingly.
At the same time, the task of making the traders aware of their environmental responsibilities is carried out by the Green Bank. If you take a loan from a green bank, the interest rate on that loan is lower than the interest rate of other banks.
what is Green Banking? Green bank is also called the sustainable bank or ethical bank. Green bank is very much needed at present. If every customer prefers green bank, we can save approximately 6.5 million trees from being cut down or 46,000 acres from deforestation every year. Can prevent air pollution. And it can get 2146000 tons of oxygen every year.
Green bank was first introduced in Bangladesh. In-depth knowledge of Green bank can be seen in the central bank of Bangladesh.
Green bank is the first non-banking financial institution in India to be started in 1987 by IREDA (Indian Renewable Energy Development Agency). Also called IREDA Green bank of India.
Green banks focus on creating clean energy rather than increasing profits. Green bank is a new development in the economy. Green bank is a type of bank. Its main purpose is to protect the environment.
what is green banking
Objectives of Green bank
what is Green Banking? – After understanding what is Green Banking? Now we can learn objectives of green banking. The business of the green bank is beneficial for industry and the economy. Green bank technology is developed to complement the children’s business.
1. Trying to increase Green Bank in India.
2. Understanding the importance and role of the green bank in the development of the country.
3. Looking for green bank development opportunities.
4. Maximize the use of green bank financial products by the people.
5. Increase plantation.
See Also –Who Is a Customer in Banking ? and 14 amazing types of customer
Benefits of Green Bank and what is Green Banking-
1. Minimum use of paper-
The main objective of the green bank is to protect the environment. With less use of paper, fewer trees are cut down. Therefore, as little paper as possible is used.
2. Awareness-
Green bank explains the importance of the environment to the customers and traders and gives information about the responsibility of the environment.
3. Interest rate-
If a trader wants a loan for an eco-friendly project or for a project that does not harm the environment, then such a person is offered a loan at a lower interest rate as compared to other banks.
4. rewards-
If it is an environment-friendly non-profit organization and the customer contributes to it, then rewards are given by the green bank.
5. Payment service –
If a customer is paying the bill electronically, such services are provided free of cost in green bank.
6. Time-saving-
Due to the green bank, more and more people get in the habit of online banking, which reduces the actual visit to the bank and saves time.
See Also – How to Write a Letter to Bank Manager for Request a New ATM Card in 2022 and Advantage of ATM Card
Green bank features –
what is Green Banking-
1.A Green bank is a type of bank through which the country can get environmental benefits. After understanding what is green banking?, let us see the features of green Bank.1. Banks balance the environment by using online banking.
2. Green banks work to maintain public safety.
3. Green banks are at the forefront of providing capital to businesses that are expanding their business with the environment in mind.
4. Green banks are striving for green growth in industrialization.
5. Green banks create a conducive environment inside and outside the bank.
6. Green bank children reduce the cost of energy so it saves money and automatically helps the country’s GDP to grow.
Role of Green bank
what is Green Banking – Banks are directly related to the environment as natural customers. Banks emit carbon in many ways in their day-to-day operations. In addition, some banks unknowingly finance certain industries ex. steel, oil, nuclear power, air conditioning, etc. Such industries cause a lot of pollution.
Banks and the environment are inextricably linked. Banks are financing each of these. Therefore, banks are very important in business growth. Every bank should provide capital to everyone keeping in view the objectives of a green bank. If banks finance without considering the environment, further risks arise.
1. Credit Risk –
Some businesses are such that if there is a slight change in the environment, the immediate effect is seen on the business. Ex. When a bank lends to a real estate firm but the value of the property falls due to some environmental issue, then the bank is in a situation of credit risk.
2. Legal risk –
Banks are at legal risk if they do not comply with environmental regulations.
3. Reputational risk –
The bank must be fully aware of the project for which the bank is providing capital. If the banks provide capital without full knowledge and the project creates pollution, then the bank is also at risk of reputational risk.
Green Bank products –
1. Green Credit Card –
The green credit card has been introduced by the Korean Ministry of Environment and Technical Institute. A green credit card is an ICT tool for monitoring greenhouse gas emissions.
2. Green saving account –
Banks make donations based on savings made in banks. The more customers save, the more donations can be made to banks. Therefore, the benefits of the environment can be enjoyed by all.
3. Green mortgage –
It is a type of mortgage in which you can get a money-saving discount or a big loan.
4. Green loan –
Banks take into account the intent of the borrower when giving the green loan. If a loan is required for environment-friendly activity then a loan is given at a lower interest rate than other banks.
5. Mobile banking / online banking-
Due to mobile banking / online banking, the work of the bank has become very less. At the same time, the objective of the green bank seems to be being achieved. The use of paper is reduced and at the same time, consumers do transactions from home so they can go to the bank and automatically protect the environment.
6. Vehicle finance –
Vehicle finance is taken from the green bank. Green banks finance the same vehicles that use alternative energy. E.g. LPG, CNG, electric bike, etc. Which will not harm the environment.
7. Carbon footprint calculator –
The carbon footprint is calculated to create environmental awareness and sensitize the people.
What is Green Banking?
FAQ.
What does green banking mean?
Green banking is made to save environment and minimum bad effect on our environment with help of green banking you can balance environment and economy as well.
What is green banking example?
Here are some quick examples of green banking. 1.Green Loan 2.Green Credit Card 3.Mobile Banking 4.Online Banking or Net Banking Carbon footprint calculator and much more...
Why green banking is important?
Green Banking is actually very important to protect our environment green banking can make major differences in reducing environment pollution.
How does a green bank work?
By Developing Products and Making No Use of Papers and By The Green Banking you can do daily transactions by sitting at home. so these things play major role in saving environment.
