"International Journal of Geography, Geology and Environment"

Today, sustainable finance and green investments have become the priority across nations. India has been practicing sustainability banking and making efforts to overcome the challenges through the adoption of sustainability-driven banking models. In India, the Environmental, Social, and Governance (ESG) framework enables banks to integrate sustainability into their operations through rational and strategic processes. ESG framework encourages banks to adopt eco-friendly policies, support sustainable projects and promote digital and paperless transactions.

The literature on sustainable banking in India highlights many contemporary studies that illustrate the current practices which are adopted by the banks to integrate the Environmental, Social, and Governance (ESG) framework into their operations. Therefore, the present study seeks to examine how sustainability practices can be effectively embedded within the Indian banking system. The existing studies point to critical gaps in the sector that must be addressed by the regulators and financial institutions. In response, this research investigates the key challenges restricting the integration of sustainability into banking operations efficiently and provides the recommendations to overcome them. The objective of the study is to examine how Indian banks are practicing sustainability banking and what are the challenges which are being faced by them and finally the solution is proposed. The study concludes with prevailing practices, structural barriers and the future pathway of sustainable finance in India. Its findings highlight the more adoption of sustainable financial practices, with particular emphasis on technological innovation and financial training as essential tools for building a resilient and inclusive banking ecosystem.