What is sustainable banking, and how is it being adopted in India?

Sustainable banking refers to financial services that consider environmental, social, and governance impacts in lending, investing, and operations. It aims to fund projects that support sustainable development, such as renewable energy, affordable housing, and green infrastructure. In India, sustainable banking is gaining momentum with initiatives like green bonds, priority lending to eco-friendly sectors, and ESG disclosure frameworks. The Reserve Bank of India encourages banks to integrate climate risk into their strategies. Public and private banks are launching green products and collaborating with international bodies on sustainability goals. While still evolving, sustainable banking in India reflects a shift toward responsible finance aligned with national and global climate objectives.