Copyright © 2026 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

@article{206366,
        author = {Kavya S and Dr Vijila V},
        title = {GREEN BANKING 2.0 IN INDIA: INTEGRATING ESG RISK, CLIMATE FINANCE AND DIGITAL TRANSFORMATION FOR SUSTAINABLE FINANCIAL GROWTH},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {13},
        number = {2},
        pages = {1317-1322},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=206366},
        abstract = {In the face of escalating environmental concerns and global climate change, the financial sector has emerged as a critical enabler of sustainable development. The accelerating climate crisis, evolving regulatory expectations, and technological advancements are redefining the role of financial institutions worldwide. In India, green banking has transitioned from operational eco-efficiency to strategic sustainability integration. Green banking the integration of environmental criteria into banking operations, products, and services has gained traction worldwide, including in India. This paper conceptualizes “Green Banking 2.0” as an advanced paradigm that integrates Environmental, Social, and Governance (ESG) risk assessment, climate finance mechanisms, and digital transformation to foster sustainable financial growth. It transforms banking from doing some green initiatives to embedding sustainability into every financial decision. Unlike traditional green banking focused primarily on paperless operations and green loans, Green Banking 2.0 embeds climate risk into credit appraisal, capital allocation, governance structures, and digital banking ecosystems. The study develops a multidimensional conceptual framework explaining how ESG integration, climate-aligned financial products, and fintech-enabled sustainability reporting collectively enhance financial resilience and long-term value creation. The paper identifies regulatory drivers, institutional barriers, and strategic enablers within the Indian context. It concludes that Green Banking 2.0 is not merely a sustainability initiative but a structural transformation necessary for achieving India’s net-zero commitments and ensuring financial stability.},
        keywords = {Green Banking 2.0, ESG Risk, Climate Finance, Digital Transformation, Sustainable Finance, Net-Zero Transition},
        month = {July},
        }