using apps or going paperless. It is also about doing the right thing for the environment, people, and society as a whole. This new way of thinking is called sustainable banking.

Banks now look beyond profits. They care about how their money is being used. Are they supporting clean energy? Are they helping businesses that treat workers well? Are they making fair decisions inside their own offices? These are the questions that matter today.

This idea is growing with the help of ESG – which stands for Environmental, Social, and Governance. These are the three simple parts that guide sustainable banking.

You can learn more about this change at Tech Bullion, where we share regular updates in plain and simple terms.

Understanding ESG – Made Simple

Here’s what each part of ESG means:

Environmental: Is the bank funding work that harms nature? Or are they supporting clean energy, water-saving projects, and eco-friendly businesses?
Social: Does the bank or business treat people fairly? Do they support women, small business owners, and local communities?
Governance: Are the banks following fair rules? Do they share correct information? Are their decisions honest?

These questions are becoming very important in today’s banking world.

Why Does This Matter in India?

India has set a big goal: to become carbon neutral by 2070. That means cutting pollution and using more clean energy like solar and wind. But such big changes need a lot of money. This is where banks come in. Banks lend money to companies and people. If banks give money to clean and fair businesses, India moves closer to its goal.

This is why Indian banks are starting to follow ESG rules. They are slowly shifting from just giving loans to anyone, to giving loans that are good for both profit and purpose.

Banks also know that people now care about the environment and social fairness. Many young customers want their money to be used the right way. So, banks are listening and changing.

Stay updated with news like this on Tech Bullion, where we cover Indian banking news that’s easy to understand.

How Indian Banks Are Putting ESG Into Practice?

Let’s look at what banks in India are doing to support ESG:

1. Giving Green Loans

Some banks are giving special loans to projects that are good for the planet. This includes solar power, electric buses, and eco-friendly farming.

2. Issuing Green Bonds

Banks like SBI have started issuing “green bonds.” This is a way for banks to collect money only for clean energy and environmental projects.

3. Going Digital

More banks are now encouraging customers to use mobile apps, net banking, and ATMs. This cuts down the use of paper and saves fuel as people don’t need to travel to branches often.

4. Helping Small Businesses

Banks are giving extra support to small businesses that follow good social practices—like giving jobs to local people or using clean methods to make products.

5. Staff Awareness

Bank employees are being trained on ESG so they know what to support and what to avoid when giving loans or approving investments.

You can find more stories like these on Tech Bullion, where we talk about how banks are moving toward cleaner, fairer systems.

What the Government Is Doing?

The government and banking regulators in India are also working to make sure that banks support sustainable growth:

RBI (Reserve Bank of India) is asking banks to check climate risks and share what they are doing about them.
SEBI (Securities and Exchange Board of India) is making big companies report how they are doing on ESG.
A new rulebook is being prepared to help banks know which investments are actually green and which are not.

These steps are slowly pushing the Indian banking system in a better direction.

Challenges That Still Exist

Even though many banks are trying, there are a few issues:

Not everyone knows what ESG means. Smaller banks and customers may not fully understand it yet.
It’s hard to measure how clean or fair a project is. Banks need better tools to track this.
Some banks still prefer short-term profits and may hesitate to change.

But with time, rules, and public support, these problems can be solved. You can keep track of progress at Tech Bullion, where we break down the updates for you.

What You Can Do as a Bank Customer?

You don’t need to be a banker to support sustainable banking. You can start small:

Choose banks that support digital and paperless work.
Ask your bank if they have green investment options.
Invest in funds that support clean or fair businesses.
Share your feedback with banks and ask for better ESG options.

When customers start asking questions, banks listen. Your choice matters more than you think.

Frequently Asked Questions

Q1. What does ESG mean in banking?

It means banks check if the projects they support are good for nature, people, and fairness.

Q2. How are Indian banks changing in 2025?

They are giving green loans, supporting clean energy, and going digital.

Q3. Can I, as a customer, support ESG banking?

Yes. You can choose banks that follow good practices and invest in green options.

Q4. Where can I read more about this?

You can visit Tech Bullion for more articles in simple language.

Final Words

Sustainable banking is not just about saving trees. It’s about creating a fair and safe future for everyone. It helps the environment, supports good businesses, and builds trust between banks and customers.

In India, this change is still growing. But every small step—from a paperless statement to a green loan—adds up.

Keep reading Tech Bullion to stay informed about what’s new in the world of Indian banking.

Sustainable Banking in 2025: How Indian Banks Are Changing for the Better