International Research Journal of Arts and Social Sciences

Modern Banking Services–A Special Reference to Greening of Indian Banking Sector

Narayanan M^* and Chandrasekaran S Department of Commerce, Vivekananda College, Tamil Nadu, India
^*Corresponding Author:
Narayanan M, Department of Commerce, Vivekananda College, Tamil Nadu, India, Email: smnarayanan431@gmail.com

Received: 19-Jul-2023, Manuscript No. IRJASS-23-107272; Editor assigned: 21-Jul-2023, Pre QC No. IRJASS-23-107272 (PQ); Reviewed: 04-Aug-2023, QC No. IRJASS-23-107272; Revised: 08-Jan-2025, Manuscript No. IRJASS-23-107272 (R); Published: 15-Jan-2025, DOI: 10.14303/2251-0044.2025.106

Introduction

The banking sector's internal environmental impact, such as its use of energy, paper, and water, is relatively low. In terms of emissions and pollution, the banking sector is generally regarded as environmentally friendly (Jacob Kurian, 2022). The banking sector's internal environmental impact, such as its use of energy, paper, and water, is relatively low. Green banking benefits consumers, businesses, and the environment. For customers, green banking means more deposit and loan services through online and mobile banking (Mohamad A et al., 2021).

Green initiatives taken by banks or a green banking concept involve using all the bank's resources responsibly, reducing waste, and prioritizing choices that are sustainable.

In addition, it means promoting environmentally friendly practices, increasing banking activities, and reducing carbon footprints. People open money market and CD accounts at online banks instead of large multi-branch banks (Aliyar LM et al., 2021). They use online banking instead of large branch offices (Chopra IP, 2015).

Objectives of the study

•To study the greening policies of Indian bankingsector.
•To determine the level of awareness andknowledge of green banking initiatives.
•To opinion and problem about the green bankinginitiatives.

Literature Review

Mohamad Aarif and Faizanuddin, in this study entitled on “Green banking: Benefits, challenges and opportunities in Indian context” analysed that major services, challenges, benefits of Green Banks in India. Green financing is the part of green banking. Green banking means promoting environmentally friendly practices and reducing your carbon footprints from your banking activities. Green banking aims at improving the operations and technology along with making the clients habits environment friendly in the banking business (Akhtar MA, 2018). They have highlighted to promote green banking in India essential policy & initiative measures, in a rapidly changing market economy where globalization of markets has intensified the competition, banks should play a pro-active role to take environmental and ecological initiatives. For sustainable development banking and financial sector play very important role. Finally, they conclude that Indian banks are running behind time and it is the need of the hour to think it seriously for the sustainable growth of the nation. Green banking concept will be beneficial for both the banking industries and the economy, Green banking will ensure the greening of the organization but it will also improve the assets quality of the banks in future (Rahim M, 2015). Green banking encourages environment friendly investment. Green banking as a concept is a proactive and smart way of thinking towards future sustainability. It is very important for the banks to be pro-active and accelerate the rate of the growth of the economy (Jameel H, 2015).

Aliyar Lebbe Mohamed Abdul Shameem and Athambawa Haleem, in their paper entitled on “A study on green banking practices in banking industry: Sri Lanka context” dealt to investigation is to determine the multidisciplinary factors that impact on green banking practices in the banking industry in study area (Miah MD et al., 2021). They have presented that establishing relevant variables to measure the economic factors, management support, customer pressure, competitor pressure, environmental concern and it extend of impact on practices of green banking. It is becoming an important norm for commercial banks to adopt green banking practices and policies as it has strong relevance to the sustainability of the firm in the long term from a legal and shareholder perspective. Finally, they conclude that green banking practices not only contributes to a sustainable environment it also helps to build a strong brand image and attract environmentally conscious customers. Importance of green banking is growing across the banking sector and regulators are coming up with new policies which are forcing the banks to adapt to the trend and avoid any financial penalties (Aithal PS, 2021).

Research methodology

This study involves that interview schedule on creation of customers. Data collection, field work and research work. Primary data was collected from 100 customers. We are gathered by the secondary data collected from variety of sources, including newspaper, unpublished dissertation and thesis. We are selected 100 respondents that using convenience sampling method. This study that percentage analysis and garret ranking used.

Analysis and interpretation

The term of analysis that estimating of some metric and the research patterns. Thus, the importance of validity of data suggest that importance of evaluating the data (Table 1).

Table 1. Type of banking channels preferred by the respondents.

The above Table 1 shows what type of banking channel prefer of the respondents. The type banking channels are divided by four groups. They are: Internet banking services, ATM services, mobile banking services, and telephone banking services.

Among the 100 respondents, 54 respondents are prefer of ATM services, 28 respondents are prefer of internet banking services, 7 respondents are prefer telephone banking, and 11 respondents are prefer of mobile banking services.

In other words, 54% of the respondents are prefer of ATM services, 28% of the respondents are prefer of Internet banking services, 7% of the respondents are prefer of telephone banking services, and 11% of the respondents are prefer of mobile banking services.

It is inferred that the majority of the respondents 54 (54%) prefer the ATM services.

The green banking services are usage of the customers in public and private sector banks. The following use often in green banking services given below Table 2.

Table 2. Category of banking services preferred the respondents.

The above Table 2 shows the category of banking sector preferred the respondents. The E-banking services usage the customers divided the three categories. They are: public sector, private sector and both.

Among the 100 respondents, 39 of the respondents are preferred the banking sector of public sector, 47 of the respondents are preferred the banking sector of private sector bank and 14 of the respondents are preferred the banking sector of both in public and private sector bank.

It is derived, 39% of the respondents are preferred the banking sector of public sector, 47% of the respondents are preferred the banking sector of private sector bank and 14% of the respondents are preferred the banking sector of both in public and private sector bank.

It is inferred that the majority of the respondents 47 (47%) are have preferred the Banking sector of private sector banks.

Usage of green banking initiatives of customers

The green banking initiatives are often use of the customers in public and private sector banks. The following use often in green banking initiatives given the classified and detailed given below Table 3.

Table 3.Banks preferred the respondents.

The above Table 3 shows the banking sector preferred the respondents. The green banking initiatives usage the customers divided the four categories. They are: State bank of India, Indian overseas bank, Tamilnadu mercantile bank and city union bank.

Among the 100 respondents, 16 of the respondents are using the green banking initiatives of state bank of India, 16 of the respondents are using the green banking initiatives of Indian overseas bank, 33 of the respondents are using green banking initiatives of Tamilnadu mercantile bank and 15 of the respondents are using green banking initiatives of city union bank.

It is derived, 16% of the respondents are using the green banking initiatives of state bank of India, 16% of the respondents are using the green banking initiatives of Indian overseas bank, 33% of the respondents are using green banking initiatives of Tamilnadu mercantile bank and 15% of the respondents are using green banking initiatives of city union bank.

It is inferred that the majority of the respondents 33 (33%) are having use of green banking initiatives of Tamilnadu mercantile bank.

Reasons of green banking initiatives usage

The reasons of green banking initiatives of the customers in public and private sector banks at study area. The ranking based for reasons of green banking initiatives given below Table 4.

Table 4. Reasons of green banking initiatives usage.

7^th rank is given to the curiosity with total mean of 48.87.
6^th rank is given to the security with total mean of 49.51.
5^th rank is given to the transaction cost is cheap with total mean of 49.61.
4^th rank is given to the banking transaction are easy with total mean of 50.81.
3^rd rank is given to be technologically with total mean of 51.14.
2^nd rank is given to the 24 hours availability with total mean of 51.40.
1^st rank is given to the save time with total mean of 51.66.

The Table 4 reveals that garret ranking is high the first rank is in time with a total mean of 51.66. The second highest rank is given to the 24 hours availability with total mean of 51.40, and the third rank is given to be technologically with total mean of 51.14.

Features of green banking initiatives

The features of green banking initiatives provided by the public and private sector banks in study area. The ranking based for features of Green Banking Initiatives given below Table 5.

Table 5. Features of green banking initiatives.

7^th rank is given to the pay the bills with total mean of 48.87.
6^th rank is given to the transfer money between accounts with total mean of 49.51.
5^th rank is given to the pay rent and so on with total mean of 49.61.
4^th rank is given to the requesting credit card and credit transaction with total mean of 50.81.
3^rd rank is given to the purchase and sales of foreign exchange with total mean of 51.14.
2^nd rank is given to the check the account with total mean of 51.40.
1^st rank is given to the stock transaction with total mean of 51.66.

The table 5 reveals that garret ranking is high the first rank is stock transaction with total mean 51.66. The second rank is given to the check the account with total mean of 51.40, and the third rank is given to the purchase and sales of foreign exchange with total mean of 51.14.

Discussion

Findings

•It is inferred that the majority of the respondents
54 (54%) prefer the ATM services.
•It is inferred that the majority of the respondents47 (47%) are have preferred the banking sector ofprivate sector banks.
•It is inferred that the majority of the respondents33 (33%) are having use of green bankinginitiatives of Tamilnadu mercantile bank.
•That garret ranking is high the first rank is in timewith a total mean of 51.66. The second highestrank is given to the 24 hours availability with totalmean of 51.40, and the third rank is given to betechnologically with total mean of 51.14.
•That garret ranking is high the first rank is stocktransaction with total mean 51.66. The secondrank is given to the check the account with totalmean of 51.40, and the third rank is given to thepurchase and sales of foreign exchange with totalmean of 51.14.

Suggestion

•The information about the benefits and usage of green banking initiatives is to be informed to allthe people in variety of age, gender and income of the respondents.
•Small size families are found to use green bankinginitiatives in large numbers. Large families also tryto use the Green Banking Initiatives in all theirfinancial transaction.
•The use of mobile way green banking initiativesappears to be less which needs to be encouraged.
•When comparing with the rural people are morein using green banking initiatives. Efforts shouldbe made to inform the rural customers towardsusing green banking initiatives.
•The customers using green banking initiativesmust be aware of the charges, interest, and otheradditional service charges while using the E-services and must compare with other banks toreduce the expenses towards the use of greenbanking initiatives.
•Most of the respondents seem to use only theirsavings bank account card (debit card), thefeatures of credit card and internet banking,mobile banking services is to be explored and bebrought to use to have comfortable green bankinginitiatives even at a huge cost of purchase.
•The security features of green banking initiativesshould be in perfect condition to enableconfidence among the users.

Conclusion

There are numerous strategies to reduce banking's carbon footprint, including upgrading online banking, mobile banking, green network counters, electronic statements, and solar ATMs, among others. In India, green banks are just getting started. Green banking is a big issue in India, with the potential to have a huge impact on our country's development. Despite the fact that green practices are becoming more popular, most Indian banks have yet to incorporate them into their operations. Furthermore, green practices were only offered in a few locations. They should consider environmental factors when conducting business, extending credit, and making investment decisions. Green banking is no longer just about education; it must also be put into practice. Scheduled banks must not only allocate resources for green funding, sustainability events, and capacity-building as part of CSR initiatives, but they must also guarantee that these budgets are utilized properly. Finally, we may argue that all banks' slogans should be "Go Clean." The RBI and the Indian government should play a prominent role in promoting green banking by formulating green policy guidelines and financial incentives.

Green banking initiatives has changed the traditional patterns of bank operations. These changes in technology, competition and lifestyles all have an impact on how banks operate today. Actually the customer had to physically visit the bank office in order to carry out banking operations. With the introduction of E-banking customers are saving money and time since they don’t have to physically visit the bank office. Every bank realizes that they must provide some kind of green banking initiatives to their customers in order to survive. Through green banking initiatives, banks can better maintain the relationship with customers because with green banking initiatives customers tend to interact more with provided services. It also increases the revenues of banks and can easily gain competitive advantage through differentiation of banking services and thereby an image improvement.

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