RBI asks banks to promote sustainable development

RBI asks banks to promote sustainable development

Mumbai:Taking in consideration wide concerns on climate change and global warming, Reserve Bank of India (RBI) asked banks to go green by taking effective steps to further the cause of sustainable development on 20 December.

“The banks are advised to implement suitable and appropriate plan of action toward helping the cause of sustainable development," RBI said.

RBI also asked banks to place the information about their efforts toward corporate social responsibility (CSR) and sustainable development in the public domain along with their annual accounts.

Sustainable Development has been defined by the United Nations as using natural resources without compromising needs and aspirations of future generations.

“Banks and financial institutions should also keep themselves abreast of the development on an ongoing basis and modify their strategies in light of such developments", RBI said.

The central bank emphasized that sustainable efforts by financial institutions assume urgency and banks can play a meaningful role for the cause of clean environment.

It said banks should act also act as ‘responsible corporate citizens’ and their activities should reflect their concern for human rights and environment.

RBI also noted there is concerted effort among all type of organisations to ensure sustainable development is not out of sight in the pursuit of their respective profit making goals.