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A STUDY ON PROBLEM OF GREEN BANKING -
WITH REFERENCE TO BODINAYAKANUR
S.KANCHANA DEVI, Ph.D Scholar, PG & Research Department of Commerce, Cardamom Planters’ Association
College, Bodinayakanur.
Dr. T.RAMALAKSHMI, Assistant Professor, PG & Research Department of Commerce, Cardamom Planters’
Association College, Bodinayakanur.
Abstract
The concept of green banking is comparatively a new concept. Green banking reduces the use of paper,
power and energy. It is a paperless banking, it is not only reducing the cost of banking and also help to save the
environment. This paper discusses the problems faced by green banking customer in Bodinayakanur. The data were
collected from the questionnaire. This paper concludes with suggestions to the findings of the study which will be
useful to the green banking customers in Bodinayakanur.
Key words: Green Banking, Environment, Online banking
Introduction
The banking sector is the largest financial sector in India. Bank have helped in country economic
development and have transferred the hopes of people in to the reality. It gives many challenges which included a
shift in consumer behaviour, technological changes, regulatory changes, etc. it has faced various ups and downs and
has became adaptive to changing the environment. The traditional banking payment agent for its customers. The
main objective of traditional banking is to increase their financial leverage by making more and more profit without
considering the negative impact of its activities on the economic and the environment. The major issue of traditional
banking is that the customers have to visit banks at only specified working hours. It involves lot time of the customer
long traveling, standing long queues, lot of paper work to perform their transactions.
Green banking differs from traditional banking. This system is new phenomenon in the financial world which
concentrates on environment and socially responsible investing. The green banking protects the environment and
reduce the carbon footprint from banking activities. It encourages banks to carry out environment friendly
investments by combining its operational improvements and technology know-how in banking business activities.
Bank started providing various services of online banking, mobile banking, green loans, E-statement, etc. They have
providing services 24*7 hours to the consumers. Banks have started providing various services like online opening
of the bank accounts, online payment of bills, online investment, use of ATMs,etc.
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Statement of the problem
Green banking plays a vital role in banking sector. The green banking processes have been digitised, and it
takes a few minutes to realise one single transaction. Also, there is no time boundation. One can do banking at any
hour of day and night. The valuable resources like electricity and forests are saved as there is a diminishing need to
establish more branches. People need not visit the branch for transacting. As a result, carbon could be controlled
easily. ATMs can be used both for withdrawing and depositing money. The account holder does not need to wait
for the branch to open up in open up in order to take money out of the account or deposit it. These are the advantages
of green banking. The researcher aim finding the problems towards green banking customer.
Objectives
To analyse the various demographic characteristic of the respondents;
To study the problem of green banking; and
To offer suggestion on the basis of the results of the study.
Review of the Literature
Sudhalakshmi and Chinnadorai (2014) present the status of Indian Banks in respect of Green Banking
and state that though goes green mantra is essential for emerging economies like India but significant efforts have
not been taken. Banks are required to include their green aspect in the lending principle. Every step taken today will
mean a better global environment in future. So, a policy measure to promote Green Banking is needed in India,
Indian banks are running behind time in adoption of this green phenomenon. Serious steps are required to be taken
in this regard.
Jaggi (2014) studies the initiative by SBI and ICICI on Green Banking. SBI has introduced a Green Channel
Counter, no queue banking, enhanced commitment towards achieving carbon neutrality, online money transfer, wind
farms. Green Products and Services initiative of ICICI Bank includes instabanking (anytime, anywhere), vehicle
finance and home finance. Moreover, these bank have taken other steps for energy conservation like duplexing (two
side printing), recyclimg, CFLS, carpool etc.
The scope of the study
The present study is related to customer of green banking in Bodinayakanur. The study also covers
demographic charactertics of the respondents and problem faced by the green banking customer.
Methodology
A study is the collection of both the primary and secondary data. The primary data collected from 60
respondent by using the questionnaire method. Simple random technique by using lottery method is adopted to
collect primary data.
Tool for the study
For the purpose of analysing the various demographical characteristics of the sample respondent’s percentage
analysis was used. In order to find the problems of green banking customer, Garret ranking method was used.
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Analysis and interpretation
In this study descriptive information given for the data collected from 60 respondents, belonging to
Bodinayakanur, who are all the customers of green banking.
TABLE 1.1
DEMOGRAPHIC CHARACTERTICS OF THE RESPONDENTS
Gender of the respondent
S.No
Particulars
No. of. Respondents
Percentage
1
Male
40
67
2
Female
20
33
60
100
Age of the respondent
1
Below 20 yrs
5
8
2
20-30 yrs
30
50
3
30-40 yrs
15
25
4
Above 40 yrs
10
17
60
100
Marital status of the respondent
1
Married
45
75
2
Unmarried
15
25
60
100
Education qualification
1
School level
5
8
2
Graduate
30
50
3
Post Graduate
15
25
4
Others
10
17
60
100
Type of banking service used by the respondent
1
Green deposits
8
13
2
Green Loans
-
-
3
Green credit card
12
20
4
Online banking
30
50
5
Banking through
ATM
10
17
6
Others
-
-
60
100
Customer satisfaction
1
Less paper work
20
33
2
Eco-friendly
business practices
10
17
3
Transaction can be
done at any place
30
50
60
100
Green banking charges to the customer
1
Reasonable
20
33
2
Un reasonable
40
67
60
100
Customer services
1
Satisfied
15
25
2
Unsatisfied
45
75
60
100
Source: Primary data
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The above Table 1.1 exhibits that out of 60 respondents, 40(67%) respondents are male and 20(33%)
respondents are female. It also indicates that nearly two-third of the respondent to belong male category. It is known
from the Table 1.1 that out of 60 respondents, 30(50%) respondent are in the age group of 20-30 years of age group,
15(25%) respondents belongs to the age group of 30-40 years. 10(17%) respondent are in the age group of Above
40 years and remaining 5(8%) have their age belong 20 years. Hence, it is inferred that the majority of the respondent
belong to the age group of 20-30. Table 1.1 represent marital status of 60 respondents. Among them 15(25%) are
unmarried and 45(75%) responds are married. Thus, a majority of respondent are married. The above Table 1.1
shows that, 30 respondents (50%) belong to the category of Graduate respectively. 15 respondents (25%) belong to
the category of post graduate. 10 respondents (17%) belong to the category of others and 5 respondents (8%) belong
to the category of school level respectively. Majority of respondents (50%) are graduate. It is noted from Table 1.1
the out of 60 respondents, 8(13%) respondents are using green deposits ,10(17%) respondents are using banking
through ATM, 12(20%) respondents are using green credit card, 30(50%) of respondents using online banking. The
majority of the respondent (50%) using online banking service. It is observed from the Table 1.1 that out of 60
respondents, 30(50%) respondents are satisfied in the transaction can be done at any place, 20(33%) respondents are
satisfied in the less paper work, 10(17%) respondents are satisfied in the eco-friendly business practices. The high
percentage of the respondents ae satisfied in the transaction done at any place. It is inferred from the Table 1.1 that
out of 60 respondents 20(33%) of green banking charges are reasonable and 40(67%) of green banking charges are
unreasonable. The majority green banking charges are reasonable. Table 1.1 show that out of 60 respondents
45(75%) of respondents are unsatisfied in customer service, 15(25%) respondents are satisfied in customer service.
The majority of the respondents are unsatisfied in customer services.
Problems faced by the green banking customers.
The responds were asked to rank the factors responsible for such problems. The order of merits assigned by
the respondents was converted into score by the Garrett ranking technique.
Table 1.2
Problems of green banking customer
SI.No
Problems
Mean score
Rank
1
Difficult to operate
56.16
I
2
Customer care
51.05
II
3
Security concern
50.81
II
4
Technical break downs
41.96
IV
Source: Computed data.
It is known from Table 1.2 that ‘Difficult to operate’ is the major problems faced by sample respondents
with a mean score of 56.16. ‘Customer care’ is the second problem faced by sample respondents with mean score
of 51.05. ‘Security concern’ is the third problem faced by the sample respondents with mean score of 50.81.
‘Technical break downs’ is the fourth problem faced by the sample respondent with a mean score of 41.96.
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Findings
It is found that 45(75%) of the respondents are unsatisfied in customer services.
It is understood from the above table 40(67%) of the respondents’ bank charges are unreasonable.
The study shows that majority of the respondents are frequently using online banking facilities.
Suggestions
In green banking the service can be improved. Its help to get more customer and its leads to the economic
development.
The green banking charges are reduced it give more eco-friendly business practices.
Give more advertisement about green banking and create awareness programme to the banking customers.
Conclusion
The current situation banks are providing huge support to development of the business. The bank increases
the green banking customer its leads to the economic development. Give more customer care services and security
services its helps to reduce the mistakes. The future of green banking seems to be very important give lots of green
product and services are expected in the future. Bank can act like a guideline towards the economic transformation
will and a platform that would give more opportunities for financing and investment policy and contribute towards
creation of low carbon economy.
References
1. Sudhalakshmi, K. & Chinnadorai, K. (2014). Green Banking Practices in Indian Banks. International Journal
of Management and Commerce Innoviations. Vol 2(1), 232-235.
2. Jaggi, G. (2014). Green Banking: Initiatives by SBI and ICICI. Paripex-Indian Journal of Research. Vol 3(6).
Retrieved on 25 January 2015 from:
http://theglobalijournals.com/paripex/file.php?val=June_2014_1402919919_31586_38.pdf.
3. Banking Theory Law and Practices – “Gordon & Natarajan”,Published by Himalaya Publishing House Pvt.
Ltd.(2014).