The concept of Green banking emerged in 2009 with coming of the first Green Bank based in Mt. Dora, Florida, United States. The Institute for Development and Research in Banking and Technology established by RBI defines Green Banking as:

‘Green Banking is an umbrella term referring to practices and guidelines that make banks sustainable in economic, environment and social dimensions. It aims to make banking processes and the use of IT and physical infrastructure as efficient and effective as possible, with zero or minimal impact on the environment.’

The world has seen much focus on economic progress and mankind has made giant steps in its journey through time. The side effects of the development process have, however, also been equally enormous loss of biodiversity, climatic change, environmental damage etc.

Banking sector plays a crucial and decisive role in promoting environmentally sustainable and socially responsible investments as it increases the value and lowers loss ratio as higher quality loan portfolio results in higher earnings. Hence, banks have to undertake some green growth initiatives within and outside their organizations for the creation of a strong and successful the banks are using online banking instead of branch banking, paying bills online instead of mailing them, opening accounts at online banks etc.

Green banking is like a normal bank, which considers all the social and environmental/ecological factors with an aim to protect the environment and conserve natural resources. It is also called as ethical bank or a sustainable bank. They are controlled by the same authorities but with an additional agenda toward taking care of the Earth’s environment/habitats/resources. For banking professionals green banking involves the tenets of sustainability, ethical lending, conservation and energy efficiency.

Green banking therefore covers two aspects. The first one being judicious use of all resources, energy and reducing carbon footprints and second being encouraging and financing only environment friendly investment. So Green banking is not only about making sustainable use of resources but also about environment friendly dispensation of credit. A proper scrutiny of all projects that are financed in terms of environment is another major element of Green banking.

Sumesh (2016) researcher found that green banking is the operation of the financial sector with special focus on the environmental, ecological and social factors. For the effectiveness of green banking, the banks should play active role and formulate green policies and should take necessary steps. The Indian banks are actively looking for effective ways to implement green banking methods for the protection of environment.

Ahuja (2015) gave an overview of literature review about green banking, researcher identified problems in the execution of the green concept, from her review, she identified customer education and awareness is biggest concern and Private sector banks are able to implement the concept in a better way. Later she explores the green initiatives by SBI to describe green banking.

Narmadha (2016) had made an attempt to know the awareness on green banking among the customers of six different banks at Chennai. They surveyed the usage, awareness of Green banking initiatives by banks, where majority were aware about the concept and the initiative of Green banking. They also concluded from test that there is no relation between age of customers and awareness/usage of Green banking.

Ahmad Zayed and Harun(2013) they tried to explore the green banking activities of Bangladeshi commercial banks and to found the reasons behind adopting green banking. For concluding this primary research, they adopted stratified sampling technique. They found that six factors namely legal factor, economic factor, policy guideline, stakeholder pressure, loan demand and environmental interest are the major influences for commercial banks to adopt green banking.

Jaggi (2014) studies the initiative by SBI and ICICI on Green banking. SBI gas introduced a Green Cannel Counter, no queue banking, enhanced commitment towards achieving carbon neutrality, online money transfer, wind farms. Green Products and Services initiative of ICICI bank includes Insta banking (anytime, anywhere), vehicle finance and home finance. Moreover these banks have taken other steps for energy conservation like duplexing (two side printing), recycling, CFLs, carpool etc.

Singh Brar (2016) researcher emphasizes on the green banking aspects of public and private sector and compares the same. Primary data was collected from Gorgon’s bankers about the Green banking. It was found that there is association between type of bank and usage of Internet banking/Branch banking, while no association between type of bank and usage of ATM and Mobile banking. Private sector banks are more aware about the environmental benefits of green banking. On the overall basis, it was concluded, private banks are more into motivating customers for green practices and provision of online services.

OBJECTIVES OF THE STUDY:

• To have brief insight about the concept of Green banking.
• To study on Green banking awareness among customers.
• To give proper findings and suggestions.

The present study was carried out with the objective, to study on green banking awareness among customers. The researchers use both primary and secondary data in this study. The primary data were collected from bank customers at Mysore district. 100 customers were selected randomly for the collection of data. The primary data were collected through a questionnaire were the respondents required to provide necessary details. Required secondary data for the study were collected from Journals, Magazines, Books and RBI repots.

Data analysis and interpretation

Table No: 1 Gender of the respondents

Source: Primary Data

Figure 1: Gender of the respondents

Source: Primary Data

From the analysis of the above table and figure 1 Gender of the respondents, out of 100 respondents 54 respondents are female respondents and 46 respondents are male who gave their opinion about this study.

Table No: 2 Age of the respondents

Source: Primary Data

Figure 2: Age of the respondents

Source: Primary Data

From the analysis of the above table and figure 2 Age of the respondents, out of 100 respondents 76% respondents are belongs to 20-25 age-group, 16% respondents are belongs to 25-30 age-group, 2% respondents are belongs to 30-40 age-group and 2% respondents are belongs to 40 above age-group.

Table No. 3: Education levels of the respondents

Source: Primary Data

Figure 3: Education levels of the respondents

Source: Primary Data

From the analysis of the above table and figure 3 Education levels of the respondents, out of 100 respondents 8% of respondents are Under Graduate, 82% of respondents are Post Graduate, 10% of respondents are Professionals and 0% of respondents are less than PUC.

Table No. 4: Respondents using ATM

Source: Primary Data

Figure 4: Respondents using ATM

Source: Primary Data

From the analysis of the above table and figure 4 Respondents using ATM Respondents using ATM, out of 100 respondents 94% of respondents are using ATM’s and only 6% of respondents are not using ATM’s. From this study it is clearly found that the majority of the respondents are using ATM’s.

Table No. 5: Frequency to Use the Atm

Source: Primary Data

Figure 5: Frequency to use the ATM

Source: Primary Data

From the analysis of the above table and figure 5 Frequency to use the ATM, out of 100 respondents 49% 0f respondents are using ATMs from 1-3 times, 28% of respondents are using ATM’S from 4-6 times, 16% of respondents are using ATMs from 6-10 times and 7% of respondents are using ATM’S over 10 times. From this study it is clearly found that the majority of the respondents are using ATM’S from 1-3 times.

Table No. 6: Have you heard about Green Banking

Source: Primary Data

Figure 6: Have you heard about Green Banking

Source: Primary Data

From the analysis of the above table and figure 6 Have you heard about Green Banking, 56% of the respondents are heard about Green Banking practices and 44% of the respondents have not heard about Green Banking practices. Therefore, this study reveals that people are not yet aware about Green Banking practices.

Table No. 7: To Use Green Channel Counter

Source: Primary Data

Figure 7: To Use Green Channel Counter

Source: Primary Data

From the analysis of the above table and figure 7 To Use Green Channel Counter, out of 100 respondents 28% of the respondents are using GCC (Green Channel Counter) or POS (Point Of Sale) and 72% of the respondents are not using GCC or POS. From this study it is clearly found that majority of the respondents are not using GCC or POS.

Table No: 8 Frequencies to Use GCC

Source: Primary Data

Figure 8: Frequencies to Use GCC

Source: Primary Data

From the analysis of the above table and figure 8 Frequencies to Use GCC, out of 100 respondents 92% of the respondents are frequently using GCC or POS from 1-3 times, 6% of the respondents are frequently using GCC or POS from 4-6 times, 0% of the respondents are using GCC or POS from 7-10 times and 2% of the respondents are frequently using GCC or POS over 10 times. From this study it is clearly found that the majority of the respondents are using GCC or POS from 1-3 times.

Table No. 9: Users of Online Banking

Sources: Primary Data

Figure 9: Users of Online Banking

Sources: Primary Data

From the analysis of the above table and figure 9 Users of Mobile Banking, out of 100 respondents 84% of the respondents are using online banking and remaining is not using online banking. From this study it is clearly found that the majority of the respondents are using online banking.

Table No. 10: Users of Mobile Banking

Sources: Primary Data

Figure 10: Users of Mobile Banking

Sources: Primary Data

From the analysis of the above table and figure 10 Users of Mobile Banking, out of 100 respondents 88% of the respondents are using mobile banking and remaining is not using mobile banking. From this study it is clearly found that majority of the respondents are using mobile banking.

Table No. 11: Green Banking Practices are Environment Friendly

Sources: Primary Data

Figure 11: Green Banking Practices are Environment Friendly

Sources: Primary Data

From the analysis of the above table and figure 11 Green Banking Practices are Environment Friendly, we can inference that the 60% of the respondents are agreed to Green Banking practices are environmentally friendly and 24% of the respondents are strongly agreed to the above.

Table No. 12: Green Banking Save Time and Cost

Sources: Primary Data

Figure 12: Green Banking Save Time and Cost

Sources: Primary Data

From the analysis of the above table and figure 12 of Green Banking Save Time and Cost, we can inference that the 64% of the respondents are agreed to Green Banking save time and cost and 18% of the respondents are strongly agreed to the above.

SUGGESTIONS:

Customers Education: There should be two levels of education viz. products and services. Seminar and workshops regarding this aspect should be organized and public meetings are to be arranged by the banks to make the e-banking practices familiar among customers.

Customer awareness screens on ATM and Computer/Mobile: The bank may display some congratulating statements like ‘Congrats! You have saved paper, energy, time and money by using it’ on the screens of the ATM’s computer/laptop and mobile phones after using Internet banking and mobile banking to attract them to use such green practices.

Special arrangement for Green Channel Counters in the Branch: There should be separate booth for Green Channel Counters so that customers can handle this device secretly in the bank premises.

Easy methods of operation: It is highly recommended that banks should install easy methods of operating internet banking so that more and more customers can make use of it easily.

More stress should be given on security aspect: There are unethical practices of hacking of accounts of customers come to know in the news sometimes. It is nothing but the branch in the security of the banks on internet. The bank should take appropriate measures in order to prevent such practices.

Biometric authentication: This study highly recommends Biometric authentication for access of alternative channels like ATM and Internet banking as an additional safety measures.

Security Personnel in the ATM Booths: The researcher is also agreeing with the majority of the respondents that security personnel should be appointed by the banks in every ATM booth. Besides security problem this will also help to solve the problem of unemployment. Thousands of youths may get engaged by doing this.

Grievance handling: The banks will have to take a particular focus on their grievance-handling mechanisms so that they can attract the customers.

Use of Information Technology in the banking industry has opened up new markets, new products, new services and efficient delivery channels for the banks. These products and services are highly beneficial to the environment because they consume fewer natural resources. Use of these new products and services is also results reduction of carbon footprint and carbon emission. Hence, these types of banking practices are called green banking practices. Opportunities in green banking practices are immense. The only need is to explore them. Banks should also educate their customers enough to make them aware about the positive consequences of using green banking practices and also to guide for proper use of them.

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