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SUMEDHA Journal of ManagementGreen Banking: A Study of Customers' Perspective in Rajasthan– Prof. Renu Jatana*– Mr. Harshila Jain**AbstractGreen banking means promoting environmental-friendly practices and reducing yourcarbon footprint from your banking activities. The concept of green banking helps to createcleaner and greener future as Green Banking has direct impact on the environment. IndianBanks are now becoming more conscious on CSR and one of the main CSR is green banking.Banks are the real catalysts, as they are having big hand in development of economy, so Indianbanks can play big role in implementation of green banking in India. This paper has been madeto study level of consumers' awareness regarding "Green banking services" by selected PublicandPrivatesector banks in Rajasthan, India. The study was conducted in 4 Cities of RajasthanJaipur, Jodhpur, Udaipur and Ajmer. And, 4 Banks are selected, which are State Bank of India(SBI), Bank of Baroda (BOB), Industrial Credit and Investment Corporation of India (ICICI),and KOTAK Bank Pvt. Ltd - 2 public sector banks (SBI, BOB) and 2 private sector banks (ICICI,KOTAK).A sample of 160 customers was taken from selected 4 banks from 4 different cities ofRajasthan state.Further, 10 customers were taken from each bank in each city.The study alsofocuses on the basic concept of Green Banking, Various Green Banking services and initiativestaken by selected public and private sector banks in India.Keywords: Green banking financial products, carbon footprint reduction, Green Loans,Green Checking A/Cs, Online Banking.1. IntroductionThe Green initiatives taken by Banks or a concept of Green banking means promotingenvironmental-friendly practices and reducing carbon footprint from banking activities. The conceptof Green banking is mutually beneficial to the Consumers, banks, industries and the economy.Thereasons for going green are manifold, and the key among them are: Increasing energy consumption and energy prices, Growing consumer interest in environmentally-friendly goods and services,***Ex-Director, UGC Centre for Women Studies, Professor & HOD, Department of Banking & Business Economics,Mohan Lal Sukhadia University, Udaipur, RajasthanResearch Scholar, Mohan Lal Sukhadia University, Udaipur, Rajasthan. E-mail : harshila2@yahoo.co.in4

Vol.5, No.4, October-December 2016 Higher expectations by the public on Ban's environmental responsibilities, and Emerging stricter regulatory and compliance requirements.Objectives of the Study To study the concept of Green Banking. To study various initiatives taken by selected public and private sector banks in Rajasthan underGreen Banking approach. To assess awareness level of customers regarding Green Banking services offered by selectedpublic and private sector banks in the state of Rajasthan. To compare the awareness level of customers regarding Green Banking services offered byselected public and private sector banks in the state of Rajasthan.Green Banking ServicesA.B.Green Banking Financial Productsi.Green Depositsii.Green Mortgages and Loansiii.Green Credit Cardsiv.Green Reward Checking Accountsv.Mobile BankingCarbon Footprint ReductionCarbon foot-print is a measure of the impact of activities on the environment. It relates to theamount of Green House Gases (GHG) producing in day-to-day business while burning fossilfuels for electricity, heating, transportation etc. Banks can reduce their carbon footprints byadopting the following measures:i.Paper-less Bankingii.Energy Consciousnessiii.Using Mass Transportation Systemiv.Go Online: Online Banking includes:a. Paying bills online,b. Remote deposit,c. Online fund transfers, andd. Online statements.v.Use of Solar and Wind Energy5

SUMEDHA Journal of ManagementGreen Banking Initiatives taken by selected Public and Private Sector BanksI.Public Sector BanksState Bank of India (SBI) SBI had launched Green Channel Counter (GCC) facility at their branches in 2010 to change thetraditional way of paper based banking (SBI, 2014). The bank had also collaborated with Suzlon Energy Ltd for the generation of wind power forselected branches by setting of windmills in Gujarat, Tamil Nadu and Maharashtra (BusinessStandard, 2014). It has become a signatory to the Carbon Disclosure Project in which they undertake variousenvironmentally and socially sustainable initiatives through its branches spread across the lengthand breadth of the country (WWF-INDIA, 2014). Export Import Bank of India (EXIM) and SBI entered into an agreement to jointly provide longterm loans up to 14 years to Spain based company Astonfield Renewable Resources and GrupoT-Solar Global SA for building solar plant in India (Yadav & Pathak, 2013).Bank of BarodaAccording to the annual report of BOB (2013), they had taken various green banking initiativessuch as: While financing a commercial project, BOB is giving preference to environmentally friendlygreen projects such as windmills, biomass and solar power projects which help in earning thecarbon credits. The organization had made considerable changes in their lending policy, i.e. it is compulsory forindustries to obtain 'No Objection Certificate' from the Pollution Control Board and also they arenot extending any finance to environmental hazardous industries which are using ozone depletionsubstances such as halos-1211, 1301, 2402 used in foam products, chlorofluoro carbon CFC11, 12, 113, solvents in cleaning and aerosol products. The bank had taken several technological initiatives such as compliance with e-business guidelines,use of internet banking, mobile banking to promote paperless banking and also increasing theinstallation of ATM's in most of uncovered areas to reduce the petrol or diesel consumption intravelling and helps in maintaining a clean environment. As a part of green initiative, they had made changes to desktop virtualization; backup consolidationand server virtualization improve data center operational efficiency. The bank is also promoting measures for pollution control and environmental conservation.6

Vol.5, No.4, October-December 2016II.Private Sector BanksICICI Bank LtdICICI bank had adopted 'Go Green' initiative, which involves activities such as Green products/offerings, Green engagement and green communication with customers as per ICICI Bank (2014): Green Products and Services: The bank is offering green products and services like–Insta banking: It is a service which gives convenience to the customers to do bankinganywhere and anytime through internet banking, mobile banking, IVR banking, etc. Thisreduces the carbon footprint of the customers as they do not require the physical statementor travel to the bank branches.–'Vehicle Finance': They are offering 50% waiver on processing fee of auto loans on thecar models which uses alternate sources of energy like the Civic Hybrid of Honda, TataIndica CNG, Reva electric cars, Mahindra Logan CNG versions, Maruti's LPG versionof Maruti 800, Omni and Versa and Hyundai's Santro Eco.–Home Finance : The bank had reduced the processing fee for the customers who arepurchasing homes in LEED certified buildings.Green Engagements–During Diwali 2013, the organization had conducted an environmental awarenessprogramme for employees and customers in which money plant was presented to all thepeople present there as a token of collective responsibility to protect the environment.–It has also become partners with the Green theme CNBC - overdrive auto awards.–The bank is celebrating World Environment Day every year on June 5. They performvarious activities on that day like green pledge through signature campaigns, plantationand distribution of saplings etc. They are also celebrating Earth hour every year in Marchin which they switch off the lights of their premises, branches and ATM's between8:30 pm to 9:30pm.Green CommunicationsThe bank always insist their customers for online bill payment, online funds transfer and subscriptionto e-statements which promote 'paperless' and 'commute free' modes of banking transactions. Green PartnersThe organization is looking forward for partnerships with national and international greenorganizations and NGO's. They are partners with Green Governance awards set up by BHNS toappreciate the participant's organization effort beyond the statutory compliance for protectionof the environment.7

SUMEDHA Journal of ManagementKotak Mahindra BankThrough the 'Think Green' initiative, the bank had taken several initiatives as per Kotak MahindraBank (2013): To reduce the paper consumption, the bank is encouraging their customers to sign for estatements and also they have become partners with 'Grow-Trees.com' to plant one sapling forevery e-statement on behalf of its customers. 16,623 saplings were planted FY 2012-13. The organization had established the 'Social, Environmental Management System Plan' (SEMSP)to evaluate the environmental and social risk of borrowers which is based on an IFC sustainableframework and performance standards. As per the guidelines of Ministry of Corporate Affairs (MCA), the bank had communicated totheir shareholders to adopt electronic copies of annual report instead of physical copies. In 2009, they had consolidated their data centers into a single facility to improve power usageefficiencies. The rain water harvesting tank has been installed in the premises and also used oil generatedfrom a diesel generator is disposed off through vendors approved by Pollution Control Board.Need of the StudyBanks in India are playing a vital role towards sustainable development by introducing variousgreen banking practices. Adoption of these green banking practices by the customers will result savingsof energy, fuel, paper and other natural resources. Though, many studies have been made in the fieldof green banking globally but there have been very few studies done in India, especially in Rajasthan.The researcher realizes that no study has been carried out on environmental aspects of various greenbanking practices introduced by the banks in Rajasthan. Therefore, it is the high time to carry outstudy on green banking practices to make the people aware about their benefits to the users as well asthe environment. Such study will surely help the banking sector, customers, policy makers and thesociety as a whole.Area of StudyThe area of study includes study of customer perception about Green Banking services inRajasthan state. Further, the study was conducted in 4 Cities of Rajasthan- Jaipur, Jodhpur, Udaipurand Ajmer. And, 4 Banks are selected, which are State Bank of India (SBI), Bank of Baroda (BOB),Industrial Credit and Investment Corporation of India (ICICI), and KOTAK Bank Pvt. Ltd - 2 publicsector banks (SBI, BOB) and 2 private sector banks (ICICI, KOTAK).Materials and Methods/Research Methodology1.Type of Research : Empirical research was conducted to identify customer's perception aboutGreen Banking services, which includes collection of both primary as well as secondary data.8