Role of Green Banking in Promoting Environmental Sustainability: A Review of Evidence and Policy Implications in India

Green banking has emerged as a strategic response of the financial sector to escalating environmental challenges and climate risks. In India, banks play a crucial intermediary role in mobilizing capital toward environmentally sustainable activities while mitigating ecological degradation. This review paper synthesizes existing literature on green banking practices in India and examines their contribution to environmental sustainability and policy outcomes. Drawing upon regulatory frameworks, empirical studies, and institutional initiatives, the paper highlights key mechanisms through which green banking influences sustainable development. Policy implications and future directions are discussed to strengthen the role of the Indian banking sector in achieving national and global sustainability goals