The Digital-to-Sustainable Shift in Indian Banking: Regulatory Pathways to Green Finance

DOI- https://doi.org/10.5281/zenodo.21742828

Abstract

The digital transformation in the Indian economy has changed the traditional banking system, the newest imperative is to address the sustainability goals. The sustainable development in an economy cannot be truly achieved without providing proper financial instruments under green initiatives. Thus, Green finance and green banking become indispensable to channelise savers' funds into lucrative green investments. This study aims to examine the latest regulatory schemes in green investment and the implementation of the same by the commercial banks. The study describes the green initiatives of selected public and private sector banks and enables them to understand the innovations and technology in sustainable banking. The detailed analysis also helps us find the challenges involved in the process which helps the researcher in deducing possible solutions. The study concludes that a clear taxonomy of regulations along with the use of AI with clear carbon footprint measurement techniques and information exchange and verification by an independent party may result in favourable results in green banking.

Keywords: Green Finance, Green Banking in India, Regulatory framework of green banking in India, Green initiatives in Indian Commercial banks.