punjab national bank institute of information technology

ISSN 2249 –1996 Vol. X No. 2 March - June 2016

e-track

Vibhuti Khand, Gomti Nagar, Lucknow- 226 010 (U.P.)

Be Green, Remain Green& Patronize green

March- June 2016

e-track

Editor

Pratima Trivedi

Editorial Team

Sanjay Srivastava

Sweety Dube

Printed by

Mahi Graphics

Indira, Nagar, Lucknow

Mobile : 9415753370

punjab national bank

institute of information technology

Vibhuti Khand, Gomti Nagar,Lucknow--226 010 (U.P.)T : +91 522 4062775, 4062016F : +91 522 4005202E-mail : bankingtech@pnbiit.ac.inURL : www.pnbiit.ac.in

Pramod Dikshit

e-track

We are what our thoughts have made us; so take care about what you think. Words are secondary. Thoughts live; they travel far. -----

-Swami Vivekananda

Thought

FROM THE EDITOR

Dear Readers,

Health of the economy rests on the

health of the planet. Every organization's

goal is to make a positive contribution to

sustainability by integrating environmental

principles into our business model.

Green Banking is an umbrella term

referring to practices and guidelines that

make banks sustainable in economic,

environment, and social dimensions. It aims to make banking

processes and the use of IT and physical infrastructure as efficient

and effective as possible, with zero or minimal impact on the

environment. Banks can do this by making day-to-day business

operations, banking products and services greener by following

different practices and making them environmental friendly.

Other thing that banks can do is by making IT infrastructure

(including data center) and physical infrastructure (including

buildings) greener and taking initiatives so that a bank could itself

generate electricity for its own consumption.

This issue of e track focuses on the green banking initiatives by

banks, challenges faced, steps initiated for reducing carbon

footprints and status of Green baking in India.

Hope you will savor this serving of e track ……

Happy Reading…………..

Pratima Trivedi (73792)

Chief Faculty, PNBIIT Lucknow

e-mail : pratima@pnbiit.co.in

From the desk MD and CEO 3 A Study of Green Banking Trends in India 26

From the desk Zonal Manager 4 Green Banking 29

From the desk Director's 5 Green Banking 32

Green Banking : Doing The Right Thing 6 Beware the Rise of Ransomware 37

Green Initiatives : Let's Eradicate the Carbon Foot Prints 9 Botnets-should you be Scared 42

Green Banking Initiatives by Different Banks 12 News on banking and Information Technology 48

Green Banking: The Paperless Banking 19 Advanced Diploma in banking technology-from our alumni 50

Green Banking: An Exploration 21

Contents

2

March- June 2016

e-track

MESSAGE FROM MD AND CEO

Green Banking is any form of banking from which the organizations

gets environmental benefits by reducing carbon footprints. A conventional

bank becomes a green bank by directing its core operations towards the

betterment of environment.

Various steps that a bank can follow for green banking initiatives

can be - encouragement of its customers to subscribe for e-statements

and electronic formats of transaction to reduce paper consumption,

initiates solar-based UPS for ATMs and its branches / offices, emphasis on digital banking

products for meeting customer needs, electronic forms for Payment and settlement , Interbank/

Intra bank transactions, all government transactions ,transactions in supply chain

management, export / import transactions, Aadhar based transactions, e-KYC etc. Also SMS

should be sent to customers informing about new products/ initiatives. Customers should be

encouraged for mobile based transactions. All loan documents/ account opening forms should

be in digital form, all the guidelines/ circulars of bank should be in electronic form, Filing of all

documents including balance sheet should be online. Even the internal notes, including the

reference points should be placed in electronic form. Apart from this for green banking, all the

projects where bank is intending to lend money have to undergo thorough necessary scrutiny

process on environmental background.

A bank can ensure this by active involvement of its stakeholders including employees.

Bank can explore two dimensional approach in environmental conservation- first is to reduce

the environmental impact of its own operations and second is to promote eco-friendly

technologies through its lending business.

I am pleased to note that PNBIIT is coming out with its quarterly journal "e-track", for

awareness and spreading IT innovations as well as enhancing the use of technology among the

banking fraternity. The journal has collection of informative articles on latest topics, which will be

beneficial to Readers.

Further I am glad to know that theme of this issue of e track is " Green Banking" which is

much required in present day scenario.

I wish all success to PNBIIT in its endeavor to educate people on the use of e-banking.

(Usha Ananthasubramanian)

Managing Director & CEO

3

March- June 2016

e-track

ZONAL MANAGER MESSAGE

Environment protection is the most important need of the planet. It is

the duty of each individual to preserve the natural resources which are

diminishing day by day due to unplanned developmental activities. In the

environment friendly society "Go Green" mantra has become relevant in each

and every aspect of business. There is a wave of change with all business

activities to not only focus on profit but also on people and planet.

Punjab National Bank is a pioneer institution in service to the society

in both the fields of Banking as well as CSR. The Bank is ensuring environment

friendly practices and thereby reducing internal and external carbon footprints. Various measures

initiated are use of solar lights, LED lights in the offices, installation of Solar light plants integrated

with electric supply grid, placing of green plants in the branches, Tree plantation, water

conservation, rain water harvesting, encouraging and financing only environment friendly

investment etc. Punjab National Bank has taken initiative to install Solar street lights in all the

adopted villages under PNB UJALA scheme and to provide Solar Lantern each to girl students

already adopted under PNB LADLI scheme.

Apart from this, Punjab National Bank has launched a plethora of digital products to reduce

the use of paper. Some of these are Internet banking, mobile banking, SMS service, ATMs, CDMs,

plastic wallet, ECS, online bill payments etc. Steps are taken for sensitizing employees through

training, workshops and education programmes

I am delighted to know that the theme of current issue of e track is "green banking" which is

a need of the hour.

I wish success to the whole team at PNBIIT for its efforts to educate people in current

scenario.

Zonal Manager

Arvind Tiwari

4

March- June 2016

e-track

FROM THE DIRECTOR'S DESK

Green Banking is the process in which bank and its related partners

will do the transactions electronically thereby reducing the carbon

footprints. It also reduces the transaction time, improves productivity

and reduces the cost involved in carrying out day to day routine jobs. e-

mail is the simple and mostly used Green Banking initiative implemented

across all business communities.

Any payments & receipts in which the financial institutions play the

crucial role has automated the process thus records are stored in

electronic form rather than in physical form. Some of the major

applications of Government transactions are using the payment gateways like MCA-21 which

captures the balance sheet of companies, Indian customs electronic data interchange system

gateway helps the importers and exporters to pay the dues on line from the originating point to

destination.

Document management and digitization system has reduced the paper usage thus

reduces the overall transaction processing time. Digitization of pension pay order, life

certificate has tremendously helped old age pensioners who now need not go from pillar to

post to obtain the services.

The digitization should be extended to the documents which banks preserves for years

like account opening form, Ledgers, Advance applications and stamp papers. It will be a

challenge for the banks and related partners to implement Green Banking.

Once implemented all the partners involved will get the benefit in operations and

security. Payment & Settlement like usage of alternate delivery channels, (Internet Banking, e-

commerce, ATM'S, POS, m-pos, note recycler, mobile) not only reduce the carbon foot print

but also enhances productivity and customer convenience.

Once the physical documents are reduced the paper usage will be reduced which directly

impacts the environment like deforestation in turn improving the global warming.

More than the technology Green Banking also applies to priority sector utilization like

rain water harvesting, solar based power generation, plantation drive which improves the

environment. Banks can contribute in this regard by enforcing certain factors while providing

advances to improve the environmental factors.

I wish bank will act proactively in implementing Green Banking initiative thereby

improving the customer service.

Happy reading.

P S Ganapathy

(Director)

5

March- June 2016

e-track

Green banking is like

a n o r m a l b a n k , w h i c h FAdopt techniques and plans to minimize

considers all the social and inventory and wasted freight.

environmental/ ecological FAdopt networked design using a carbon

factors with an aim to protect footprint.

t h e e n v i r o n m e n t a n d

conserve natural resources. It FFacilitate paperless transactions.is also called as an ethical FAdopt techniques for workforce and parts bank or a sustainable bank. optimization as well as intelligent device

They are controlled by the same authorities but management.with an additional agenda towards taking care of

the Earth's environment, habitat and resources. FUse electronic means wherever possible, to

maintain contact with and correspond with

customers and potential customers, and FAvoids paper work: Almost all banks in India

minimize paper-based correspondence.are computerized or operate on a core

banking solution (CBS). Thus banks adopt FSelect vendors by the sustainability rating of

paperless or less paper for office work and their products, services and operations.

switch over to electronic correspondence and

reporting thereby controlling deforestation.FDesign and offer banking products and

FLoans at comparatively less rates: Banks can services in such a way that consumes less

also introduce green bank loans with financial resources and energy and thereby reduce

concessions for environment friendly carbon footprint.

products and projects such as fuel efficient FImplement effective systems for product end-

vehicles, green building projects, housing and of-life management that have minimal

house furnishing loans to install solar energy impact on the environment.

system etc.

FCreating awareness to business people

about environment: Many NGOs and Banks are developing new products and

env i ronmenta l i st s are propagat ing services that respond to customer demand for

environment consciousness among the sustainable choices. Following are some of the

public by arranging awareness programs and options that banks should offer to their customers,

seminars. Banks may also associate if they are not already:

themselves by sponsoring such programs.FElectronic and telephone banking, facilitating

customers to perform most of their banking

needs anytime, anywhere.A green bank requires each of its functional

FAutomatic payments reduce the need to units and activities to be green - environmentally

write and send cheques by mail.friendly, which can be achieved using following

FElectronic (paperless) statements, product green processes:

Supply Chain Management

Enterprise Resource Management

Customer Relationship Management

Benefits of Green Banking:

Sourcing and Procurement

Product Life Cycle Management

GREEN PRODUCTS AND SERVICES

GREEN PROCESSES

GREEN BANKING – DOING THE RIGHT THING

6

March- June 2016

e-track

information, guides and annual reports to save you a trip to the bank, it saves paper

customers and stakeholders. work also.

Online bill payment: Telephone bills, cable FOffering and promoting mutual funds that

bills, utility bills, credit card payments and focus investment in 'green' companies.

mortgage payments can be all paid FOffering a special line of credit to help

electronicallyhomeowners invest in energy-efficiency

Reward Debit and Credit Cards: Some banks upgrades for their home.

have joined up with environment-friendly FOffering credit cards co-branded with groups like The Sierra Club or Defenders of environmental charities.Wildlife to create reward debit cards and

credit cards. Participating banks will make a

FBanks may formulate innovative financial small charitable donation as a percentage of

solutions and redesign the existing ones so as your online banking activity to help the

to incorporate environmental perspectives. environment.

Net banking: For customers to perform their FBanks can introduce green funds for

banking related functions online, i.e., without customers who would like to invest in

visiting the bank, customers must possess an environment-friendly projects.

internet banking ID and password provided by FBanks can involve themselves in carbon credit

the bank in which the individual customer has business, wherein they can provide all the

an account.services in the area of clean development

mechanisms and carbon credit business.

FBanks can support projects ranging from The first Green Bank was opened in 2009 in community cleanups to national initiatives on

Florida as many US banks were failing, and received climate change, water, air, biodiversity and the last banking charter in the state of Florida prior more.to all charters being halted. This bank is known for

its focus on environmentally-friendly banking

practices, and for its motto of "Doing the Right F Online Savings Account: Online savings Thing" for the environment and its people, account and mobile banking is the easiest community and shareholders.way that you can do your part to bank green

and help the environment.

Paperless statements: Sending out bank I. SBI (State Bank of India), largest public sector statements by mail is a big waste of paper.

bank in India, has become the first bank in the Signing up for online banking at most banks country to venture into green banking:includes an option for customers to receive

FIntroduced green channel counters and no their statement electronically through a queue banking in over 5000 branches across secure log-in.India. Use Direct Deposit: Most employers will give

FSupporting the construction of wind farms in employees the option to receive their

India.paycheck electronically. Not only does this

FImplementing policies aimed at achieving speed up the availability of your money and

OTHER GREEN BANKING ACTIVITIES

First Green Bank:

Methods for adopting Green Banking:

Initiatives taken by Indian Banks:

7

March- June 2016

e-track

carbon neutrality. certified buildings.

III. Recently in February 2015, YESBANK, India's FOnline money transfers between United

4th largest private sector bank, has States and India from branch banks.

II. ICICI Bank, the largest private sector bank of successfully issued India's first ever green

India, also provides green product and infrastructure Bonds raising an amount of INR

services to its customers, such as follows: 1000 crores.

FInstabanking: It means the convenience

of anytime anywhere banking through

Fwww.wikipedia.orginternet banking, mobile banking and

Fwww.in.answers.yahoo.comIVR banking.Fwww.irdbt.ac.inFVehicle finance: Bank offers Auto 50% Fwww.isindexing.comwaiver on processing fee on car models FBooks -Bank ing Env i ronment Green which use alternate mode of energy;

Technologylike Maruti's LPG version of Maruti 800, FArticles related to Digital India from various Omni and Versa, Hyundai's Santro Eco,

newspapers.Tata Indica CNG etc.

FHome finance: Bank offers reduced Author is Mr Raman Vermaprocessing fee to customers who

ADBT batch IX, working as Asstt. Manager, HP purchase home in 'Leadership in energy

and environmental design' (LEED)

References:

1.) GOOGLE - Global Organization Of Oriented 18.) RAM - Random access memory. 40.) GPS - Global Positioning System.Group Language Of Earth. 19.) ROM - Read only memory. 41.) DVD - Digital Video Disk.

2.) YAHOO - Yet Another Hierarchical Officious 20.) VGA - Video Graphics Array. 42.) DTP - Desk top publishing.Oracle. 21.) QVGA - Quarter Video Graphics Array. 43.) DNSE - Digital natural sound engine.

3.) WINDOW - Wide Interactive Network 22.) WVGA - Wide video graphics array. 44.) OVI - Ohio Video Intranet.Development for Office work Solution.

23.) WXGA - Widescreen Extended Graphics 45.) CDMA - Code Division Multiple Access.4.) COMPUTER - Common Oriented Machine Array. 46.) WCDMA - Wide-band Code Division Multiple

Particularly United and used under Technical 24.) USB - Universal serial Bus. Access.

and Educational Research.25.) WLAN - Wireless Local Area Network. 47.) GSM - G loba l Sys tem for Mob i le

5.) VIRUS - Vital Information Resources Under Communications.26.) PPI - Pixels Per Inch.Siege.

48.) WI-FI - Wireless Fidelity.27.) LCD - Liquid Crystal Display.6.) UMTS-Universal Mobile Telecommunications 49.) DIVX - Digital internet video access.28.) HSDPA - High speed down-link packet access.System.50.) APK - Authenticated public key.29.) HSUPA - High-Speed Uplink Packet Access.7.) AMOLED - Active-matrix organic light-emitting 51.) J2ME - Java 2 micro edition.diode. 30.) HSPA - High Speed Packet Access.52.) SIS - Installation source.8.) OLED - Organic light-emitting diode. 31.) GPRS - General Packet Radio Service.53.) DELL - Digital electronic link library.9.) IMEI- International Mobile Equipment Identity. 32.) EDGE - Enhanced Data Rates for Globa

Evolution. 54.) ACER - Acqu is i t i on Co l l abo ra t i on 10.) ESN - Electronic Serial Number.Experimentation Reflection.33.) NFC - Near field communication.11.) UPS - Uninterruptible power supply.

55.) RSS - Really simple syndication.34.) OTG - On-the-go.12. HDMI-High-Definition Multimedia Interface.56.) TFT - Thin film transistor.35.) S-LCD - Super Liquid Crystal Display.13.) VPN - Virtual private network.57.) AMR- Adaptive Multi-Rate.36.) O.S. - Operating system.14.) APN - Access Point Name.58.) MPEG - moving pictures experts group.37.) SNS - Social network service.15.) SIM - Subscriber Identity Module.59.) IVRS - Interactive Voice Response System.38.) H.S - HOTSPOT.16.) LED - Light emitting diode.60.) HP - Hewlett Packard.39.) P.O.I - Point of interest.17.) DLNA - Digital Living Network Alliance.

*Did We Know !*

8

March- June 2016

e-track

Abstract: Global Warming and droughts, climate change, global warming, its impact on climate change occurrences of natural disasters etc. Environmental use to be a most discussed risk can be defined as risk of causing pollution or topic in environmental forums destruction of the natural environment (land, few years back, is being faced water, air. natural habitats, animals and plant by the society today. Since species), either through accidental or deliberate p e o p l e a re fa c i n g t h e actions. Although there is an increasing trend of consequences of increased awareness and commitment to address usage of technology there has environmental issues that we are facing.

been increased awareness about taking steps which Organizations are adopting environment-friendly reduces the negative impact of technology. practices. But the biggest challenge for an Increased usage of computing in banking has left its organization which makes an attempt to be eco carbon foot print on environment. Banking a friendly is to understand first what that really Financial Institutions plays a pivotal role in economy means and develop designs and processes which of a country and thereby it becomes more not only add value but are also sustainable over a important for Banks and Financial Institutions to period of time.adopt strategies which focus on greener aspects.

The present paper aims at discussing the initiatives Banking Definition: Bank being a financial entity taken by Bank to improve the quality of services and acts as an intermediary to accept deposits and then reduce the carbon footprint. extend those deposits for lending using various

channels like Branch, Net Banking, Automated Key words: Green Banking, Green Initiatives, Teller Machine (ATM), Mobile Banking. Green Process enhancing Green Banking, Environment Banking focuses on four major aspects through

which they try to control the effects of computing

Introduction: Computing was initially deployed to technology on environment, these aspects are -

solve complex problems at a faster speed and products, services, processes and strategy.

provide a meaningful interpretation and analysis of

the provided data pertaining to the problem. As Computing in Banks: With the evolution of time progressed emphasis continued to be on technology Banks have also adopted ICT not only to development computer of technology which manage customer base which has increased many bettered the speed, results and analysis as folds due to increase in awareness among people compared to the previous available technology. about banking practices but also to scale up the But in recent past it has been realized that level of services being offered to customers. development of the technology and more Increased usage of Computers in banks has made importantly its deployment had its hidden cost. them also a contributor of the unwanted outcomes Reckless growth is endangering the planet and is of computing technology on environment.highly priced if we equate it with environmental Importance of emission reduction has been realized degradation, resulting in irreversible effects of by the banks and many have incorporated an inconsistent and changing weather, floods, exhaustive strategy to counter the same.

GREEN INITIATIVES : LET'S ERADICATE THE CARBON FOOT PRINTS "If you really think the environment is less important than the economy, try holding

your breath while you count your money" - Guy McPherson

9

March- June 2016

e-track

Furthermore banks are developing environment- mandate). All internal memos, process notes and

friendly strategies which are to be adopted in daily records have been developed in electronic form.

procedures and practices, data centre, internal Internal communications are done through emails

processes and also educating customers on and dedicated Email Ids are provided to all the

technology based transactions, saving energy, etc. employees. Banks are implementing green banking

channel in bank lobby which encourages the

customer to use green channel and thus Green Banking: Green Banking can be defined as a

significantly eliminates paper usage in form of pay term which collectively refers to routine

in slips, deposit slips, vouchers, challans and contributes in economic, social dimensions and

transactions are done on paperless mode. Banks more importantly without compromising on the

are making an effort to ensure that all the environment aspect. Objective of Green Banking is

customers have a debit card. Debit card users are to ensure optimal utilization of IT and physical

provided with the facility of transacting by swiping resources which would provide effective results

debit cards due to which customer are able to skip without compromising on environmental factors

queue and save time. Debit Card initiated and would have minimum negative impact on

transactions are verified by ATM pins. Furthermore environment. Banks are aiming at evolving

transactions done through debit card are posted operation processes, banking products and banking

faster in comparison to the one done manually services which are more environment friendly.

through teller counter. Green Banking Channel Banks have realized the importance of technology facilitates Cash Deposit, Cash Withdrawal and Fund and its impact on environment. Banks are Transfer to same bank account or other bank continuously working on developing and upgrading account also. products and services that are in line with the

growing needs and expectation of the customers

Banks have not only adopted measures at customer and are environment friendly also. Banks facilitate

facing end but have also made changes in internal paperless transactions and are encouraging usage

processes by centralizing them. Account opening of electronic means, wherever possible, efforts are

and servicing, overseas account opening and trade made to maintain contact with and correspond with

finance have been centralized which helps to customers with minimized paper-based

manage the account from any place or any channel correspondence. Banks have developed channels

(E Lobby, ATM, Net Banking, Tele Banking etc). In like E Lobby, Net Banking and Tele banking which

order to track the automated process at every step facilitate customers to carry out their banking

Document Management System has been requirement anytime and from any place of their

incorporated which has an integral workflow convenience. Automated Teller Machines (ATM),

capability. Document Management System is an NEFT, RTGS have eliminated the requirement of

important tool which eliminates the usage of paper making the payments through cheques and

to a significant level. Documents pertaining to encourage paperless transactions. Going in line

Account Opening, Loans Application etc are with the Green banking concepts banks have

scanning is done at the branch level just after developed Electronic Statements, Products

document verification and the images are stored Information and Manuals which can be sent or seen

centrally through Document Management System online. Paperless communication is emphasized

for retrieval when required. While being stored in and communication to customers is done via

Document Management Services these documents emails, SMS or ATM display (unless regulatory

10

March- June 2016

e-track

are categorized using Intelligent Character URI (Uniform Resource Indicator) which would be

Recognition or Optical Character Recognition unique for every user along with their consent to

Technology which helps in easy retrieval of the the banks and records can be retrieved directly

documents. Document Management System is from the repository.

linked with Processing Center for processing and Further to customer awareness programs,

are integrated to be used for Account Servicing, customer counseling at an extensive level needs to

Core Banking Solution, Lending Services, Mail be done on usage of Net Banking and Mobile

Messaging and Balance Inquiry through Miss Call. Banking to reduce the carbon footprint of banking.

This process not only reduces the turnaround time Customer awareness program are being

by fast processing but also reduces the cost and continuously run by banks but customers are not

eliminates requirement of storing multiple physical counseled or coaxed for the same. Only those

copies of same documents for various purposes and customers who understand the utility of Green

departments. Adoption of Document Management Banking Channels endorse them but concerns of

System has significantly reduced requirement of customers who have inhibition in endorsing the

paper usage and storage and is playing a important Green Banking Channels are not addressed

role in reducing carbon footprints by the banks. adequately.

Milestones : Lot of initiatives have been taken by Reference :

banks to control the impact of technology on [1] Green Banking Practices - A Review Vikas

environment but all the efforts until now have been Nathi, Nitin Nayak & Ankit Goel, Business

majorly in products and services related to the Management (IMPACT: IJRBM), 2347-4572,

Depository part of the banks. E Lobby, Mobile Vol. 2, Issue 4, Apr 2014, 45-62.

Banking, Net Banking, Tele Banking, TAB Account [2] Green banking: Going green, Raad Mozib Opening are all related to the depository part of the Lalon, International Journal of Economics, banks. As far as lending is concerned not much Finance and Management Sciences, 2015;

initiatives have been taken. In Lending still the 3(1): 34-42.

documentation and the appraisal of case is being [3] Green Computing - New Horizon of Energy done traditional way. Account Opening of Deposits Efficiency and E-Waste Minimization - World requires basic KYC of the customer and only pay in Perspective vis-à-vis Indian Scenario, slips etc are required for servicing at latter stage Sanghita Roy, Manigrib Bag.which does not require much of documentation [4] "A study on Customer's Awareness on Green while documentation of Lending products involves Banking Initiatives in selected public and exhaustive list of documents at initial stage itself. private sector banks with special reference to Initiatives on the lines of TAB Account opening Mumbai", Ms. Neetu Sharma, Ms. Sarika K, should be taken for Lending Products also which Dr. R. Gopal.would significantly reduce the usage of hard copies [5] A Study of Green Banking Trends in India. Dr. of documents. Digital Locker a recent key initiative Nishikant Jha1 and Shraddha Bhome.of the Indian Government under Digital India

program also aims at minimizing the usage of

physical documents and would enable sharing of e- Author is Meenakshi Srivastavadocuments across agencies. Regulators should Assistant Professor, Amity University, Lucknowformulate policy wherein customer can quote their

11

March- June 2016

e-track

Abstract substantial. Banks should promote those products,

process and technology which substantially reduce The difficulty pertaining to

the carbon footprint from the environment. Study environment, maintaining the

by Hart & Ahuja (1996) is showing a positive ecologica l balance and

correlation between environmental performance environmental sustainability

and financial performance. Initially, banks were has become issues for debate

doing analysis of their financial performance only, around the g lobe. The

but now it is a time to do analysis of social and organizations as well as

environmental performance as well. It aims to make consumer have understood the significance of the

banking processes and the use of IT and physical environment for the survival of human beings.

infrastructure as efficient and effective as possible, Banking sector plays an important role in the

with zero or minimal impact on the environment .It economic growth of a nation. As the banks have

is being observed that the banks all over the world tremendous transactions in their working dealing

are adopting such practices (apart from financial with millions of customers and are among one of

concerns) that would have positive implications for the major sources of financing instrument for

the environment. Hence, the banks are attempting commercial projects so they can play a foremost

to be environmentally as well as socially conscious role in promoting environmental sustainability by

and thus, giving emphasis to the ethical aspects of funding the socially and environmentally

doing business. responsible investment projects. The concept of

green banking is comparatively a new concept. It is

a paperless banking, which not only reduces the

cost of banking activities but also helps in

environment sustainability. It helps in reducing the Punjab National bank is fully committed for

use of paper, power and energy.the protection of environment and has taken plenty

of steps towards this. PNB believes that by taking

action today, we can improve the quality of life for

generations to come.Green banking is making technological

improvements, operational improvements and The bank introduced Green Banking by

changing client habits in the banking sector so as to completing transformation into Core Banking

conserve natural resources important for Solutions (CBS) banking from manual/ PBA/TBA

environmental balance. It means to support atmosphere. To reduce paper usage, multiple

environmental friendly practices and to condense account opening forms have been merged in one.

the carbon footprint from banking operations. It is a Even for transfer entries combo voucher is there.

smart and proactive way of thinking with a vision of Bank has signed "Green Pledge" of the future sustainability. Banking activities are not Ministry of New and Renewable Energy. As a unique physically related to the environment, but the green initiative, Ernakulum circle of the Bank has set external impact of their customer activities is up a butterfly park in the compound of the

Green Banking Initiatives by Punjab National

Bank:

Introduction

Green Banking Initiatives by different Banks

12

March- June 2016

e-track

Guruvayur Temple which houses 18 types of competition in the Indian banking space. These

medicinal plants. Mainstreaming environmental seven areas are People Development, Increase

protection into credit process, bank has formulated CASA & Retail Business, Improve CD Ratio through

guidelines to ensure that all necessary statutory Credit Growth, NPA Management, Improve

and other approvals/permissions including from customer service, Digital PNB and Increase Income

the Pollution Control Board have been obtained & Control Expenditure. under Digital PNB bank has

before disbursement of term loans. In all project formulated many schemes for paper less work

loans, compliance with environmental and social which is addition to green banking efforts.

safeguards inc lud ing resett lement and Towards People Development, the Bank has

rehabilitation of project affected people is to be launched new Mobile App based e-Learning

ensured as pre-disbursement condition. Further, Platform named 'PNB Univ'. It is available on all

Bank has in place guidelines for providing finance to major Mobile Platforms, besides web based access

units producing clean energy such as, solar energy, through Desktop or Laptop to provide a quick

wind energy and hydel energy on merits of each access to quality curriculum and high quality

case which help in containing Green House Gases training 24x7 right on the palm top. This gives

(GHGs) emissions leading to clean environment. paperless training, paper less conduct of tests and

To curb financing of units and activities which paperless issuance of certificates.

use Ozone Depleting Substances (ODS), Bank has The Bank launched many new innovative

evolved guidelines. Besides, the Bank is considering digital products which are boon to customers

steps for promotion of Sustainable Development and has made working online:

with particular reference to IFC Principles on 'PNB ATM Assist': Unique App enabling the Project Finance (The Equator Principles). Wind customer not only to locate PNB's ATM but energy is emerging all over the world as an also to lodge complaints related to ATMs.important source of clean energy. Towards

'PNB MobiEase': Mobile app to provide single promotion of this source of energy, Bank has

touch banking.envisaged to provide up to 1% of its total advances

'PNB Sleep Easy': To disable and re-enable to this segment. In recognition of efforts to promote

Internet Banking and Mobile Banking wind energy, PNB was awarded the second prize for

password.the "Best Wind Power Project Financer" by Wind

'Green PIN': To enable customers obtain Power India 2011.duplicate PIN for debit card instantly through

Bank has brought Green Pin initiative for debit SMS request.

card- In this generation of PIN is just by sending SMS Online PPF and RD account opening facility.to DCPIN<space>card number to 5607040.Then Online booking of locker facility anywhere in using OTP, PINcan be generated through ATM or India through the corporate website.internet facility.

The Bank has also introduced the facility to The Bank implemented a new strategic register for Mobile Banking through vast approach named 'Indradhanush' which charts the network of over 9000 ATMs.seven key reform areas for the Bank so as to adapt,

The Bank registered its presence on the social evolve and thrive in the face of increased

*

*

*

*

*

*

*

*

*

13

March- June 2016

e-track

networking sites i.e., Twitter and LinkedIn, amongst 16 companies in India to make it to the

with an aim of strengthening "Brand PNB" on Carbon Disclosure Leadership Index (CDLI) in 2012

social media and to engage with customers in with a score of 71. Over the last few years, the bank

a cost efficient manner. has succeeded in reducing its Carbon emissions

through a number of initiatives. The measures to A separate audit sheet to assess the

reduce bank's operational carbon footprint are implementation and impact of the green initiatives

focused on areas of paper use, waste management has been evolved. With growing concerns about

and energy efficiency, with some forays into climate change, Bank has taken various steps for

exploring renewable energy for ATMs. reducing emissions and energy consumption. The

Bank has begun conducting Electricity Audit of Other initiatives taken by the HDFC bank to reduce

offices as an energy conservation initiative. Bank is its operation foot print include:-

also emphasizing on green buildings and earnestly Reducing the Use of Paper by issuing

encouraging simple Green practices such as opting electronic transaction advices for corporate

for energy efficient lights, printing on both sides of customers and encouraging retail customers

paper, purchasing composite fax machines which to convert to e statements instead of physical

can perform multiple functions, immediate printouts

repair/redressal of water leakage, use of master Renewable Energy initiatives like Project of 20 censor /master switches for light, fans etc, Solar ATMs with the pilot ATM set up in Bihar.wherever possible.

Other initiatives are promotion of rainwater

harvesting, reduced use of paper by using email for Eco-Friendly Vehicle Finance- As an initiative

inter-office communications, reduced power towards more environment friendly way of

consumption through various energy conservation life, ICICI Bank offers 50% waiver on Auto

measures and conducting tree plantation drives. Loans, processing fee on car models which

Bank organized more than 290 Tree Plantation use alternate mode of energy. The models

Drives.identified for the purpose are, Maruti's LPG

version of Maruti 800,Omni and Versa,

Hyundai's Santro Eco, Civic Hybrid of Honda,

HDFC Bank is one of the most active banks in Reva electric cars, Tata Indica CNG and

India in the field of Green banking. The banks has Mahindra Logan CNG versions.

been measuring its carbon footprint since 2010 and Home Finance- ICICI Home Finance offers has been disclosing the same to the Carbon reduced processing fees to customers who Disclosure Project (CDP), which is an organization purchase homes in Leadership in Energy and based in the United Kingdom that works with Environmental Design (LEED) certified shareholders and corporations to disclose the buildings.greenhouse gas emissions of major corporations.

ICICI Bank also works with various institutions CDP recognizes companies with high-quality to help them find alternative cleaner

disclosure as top scoring companies in the Carbon solutions for their general operations. For Disclosure Leadership Index (CDLI).HDFC was one

*

*

Efforts by ICICI Bank

*

Efforts by HDFC for green banking

*

*

14

March- June 2016

e-track

instance, in coal technologies, ICICI Bank statement registration by a customer, Axis

introduced innovative concepts like deep bank has decided to donate a note book to

beneficiation of coal (coal washeries) and coal the needy and poor. Axis Bank encourages its

bed methane. It also assisted a company customers to subscribe for e statements and

develop a product that provides an other electronic formats of Communication,

ecofriendly Air-conditioning alternative to t h u s s i g n i f i c a n t l y re d u c i n g p a p e r

conventional air conditioners (ACs). consumption.

ICICI Bank has extensively capitalized on the With an aim to spread awareness about

existing internal media- statements, inserts, environment protection and cultural

and Credit Card Charge slips- to reach out to heritage, the bank conducted 'Splash', a pan-

the customers and seek their collaboration in India painting competition on various themes

the Go Green movement. ICICI Bank also related to Environment. The competition

initiated a programme to sensitise corporate started on Children's Day (November 14) and

bodies, institutions, banks and government was held across all branches of the bank. The

agencies involved in project planning on competition was open to all children in the

issues like biodiversity, wildlife habitats and age group of 7 to 12 years. The competition

environmental laws. was not restricted to customers of the bank.

Recycling initiative under the Green Banking Kotak Mahindra has taken various small and

banner that helped the bank productively use big environmentally conscious initiatives to

around 21572 kilograms of dry waste during the significantly reduce its carbon footprints. Some of

year. The Axis Bank's corporate office in Mumbai is them are :

designed and constructed as a Platinum LEED The Bank's 'Think-Green' in i t iat ive

Certified Green Building. encourages customers to sign-up for e-

The bank uses renewable energy to power statements and d iscont inue paper

emergency lights, generated through a solar statements,thereby saving the environment.

power plant. It has also installed motion It levies Rs. 100 for cash payments for credit

sensors for reducing energy usage, rainwater card dues. At Kotak Securities, e-contracts

harvesting system and a sewage treatment have been introduced to save paper, the

plant for maintaining a green environment. number of pages in the Account Opening

Even the furniture in the bank is made out of a Forms has been reduced by 20 sheets and

high percentage of recycled materials. multiple client updation forms have been

integrated into one.Launched a plant-a-sapling initiative, in which

the bank planted over 1 lakh saplings on Grow-Trees.com is a web-enabled service

August 1 and 2 at over a thousand locations where you can plant trees in large

across the country. reforestation projects and dedicate the trees

to honour friends/ family on important Facility of e-statement and for each e

occasions -birthdays, new births, weddings,

* *

Efforts by Axis bank Kotak Mahindra Bank

*

*

*

*

*

15

March- June 2016

e-track

anniversaries or to offset carbon emissions. Practices'' at Global CSR Excellence &

Under the arrangement with the bank, Leadership Award 2013 and ''Best Corporate

Grow-Trees.com plants a tree for very e credit Social Responsibility Practice 2013'' at BSE -

card statement on behalf of the customers. 7th Social and Corporate Governance Awards.

The Bank has also been awarded with ''Top Further, in-line with the Government of India -

Green IT Enterprise Award 2012'' by CIO Ministry of Corporate Affairs' (MCA) green

Magazine.initiative, bank is encouraging customers to

opt for ecopies (electronic form) of the annual

report instead of physical copies.

On the occasion of State Bank Day, the bank

had launched 'Green Channel Counter' (GCC)

facility on 1st July 2010 at 57 select branches spread Inauguration of Mumbai's first solar powered

across the country and the same was expanded to ATM as part of its Green Office Project

more than 5000 branches in 2011. This is a campaign 'Hum aur Hariyali'. It also unveiled a

pioneering concept which is eco-friendly as it 'Green Office Manual -A Guide to Sustainable

avoids use of paper and convenient as it saves time Practices', prepared in association with the

and employee effort. SBI became the first bank in Centre for Environmental Research and

the country to venture into generation of green Education (CERE), with which the bank has

power by installing windmills for captive use in been collaborating with to promote the role

2010. As part of its green banking initiative, SBI of corporations in advancing environmental

installed 10 windmills with an aggregate capacity of sustainability through the medium of the

15 MW in the states of Tamil Nadu, Maharashtra 'Green Office Project'.

and Gujarat. The bank has been encouraging IndusInd's new Solar ATM replaces the use of customers by extending project loans on conventional energy for 8 hours per day with concessionary interest rates to reduce greenhouse eco friendly and renewable solar energy. The gas (GHG) emissions by adopting efficient energy saved will be 1980 kW hrs every year manufacturing practices through acquisition of and will be accompanied by a simultaneous latest technology. SBI offers an interest discount of reduction in CO2 emissions by 1942 Kgs. In 10 basis points on all such environment friendly terms of costs, the savings will be substantial, projects. The bank arranges consultancy services by approximately Rs. 20,000 per year in case of a roping in the services of empanelled consultants in commercial user with grid power supply.CDM (Clean Development Mechanism) registration

Other initiatives of the bank include thin process. SBI has also launched a loan product to

computing, e-archiving, e-learning, e-waste facilitate upfront finance to project developers by

management, paperless fax, energy way of securitization of carbon emission

conservation and also supporting finance reduction(CER) receivables. SBI initiated the carbon

programs with incentives to go green.disclosure projected in the financial sector in India,

The Bank has been honored with ''Best Use of for the sake of environmental concern and safety by

CSR Practices in Banking & Finance'' and becoming a signatory to the Carbon Disclosure

''Innovation in Corporate Social Responsibility

*

Green Banking Initiatives by State Bank of India:

Green Banking Initiatives by IndusInd Bank:

*

*

*

16

March- June 2016

e-track

Project of World Wide Fund. among society have been taken by the bank

The bank has undertaken initiatives to

popularize use of solar street lights and rain The bank gives a due weightage while

water harvesting in rural areas.financing commercial projects, to green

projects such as windmills and solar power

projects which helps in earning the carbon

credit. The current study has revealed that the

The bank insisted to implement water banking sector has become extremely conscious of

treatment plant and obtain NOC from the need to go green. The Private Banks are as much

central/ state government pollution control involved in the green banking approach as the

b o a rd w h i l e l e n d i n g t h e l o a n t o Public Sector Banks. All the banks are making efforts

manufacturing units which emit toxic to make banking paperless. This has been fully

polluting substance. supported by technology in terms of electronic fund

Promotion of measure of pollution control transfers, ATMs, internet and mobile banking.

and efforts for environmental protection & Banks are in search of alternative energy sources for

conservation and cleaning of environment. running facilities like ATM's etc. The adoption of

Green Banking not only enhances the image of the Bank has adopted environment friendly

bank, but also protects the environment and makes systems and technologies in the design of the

the overall growth sustainable.new Data Centre (Green Initiative), which

includes:

1. Energy efficient electrical and HVAC design

2. Environment friendly construction material 1. Ray Vareen, 'A Green Dream', 4P's Business

and Marketing, 21 Nov to 4 Dec 2015. 3. Temperature monitoring

2. Leslie D Monte, 'It's Times for Green Banking', 4. Intelligent building management software

Business Standard, May 21, 2016. 5. High efficiency Precision air-conditioning

3. Ritwik Mukherjee, 'SBI launches green policy units

for paperless banking', Financial Chronicle,

August 27, 2010.

4. Bank ing and F inanc ia l Markets in Provision of Internet banking, mobile

Maharashtra 1947 to 2007 by Niti Bhasin New banking, phone banking and electronic cards

Century publication, New Delhi, June 2009 was added as alternate delivery channel to

edition. reduce the use of paper in banking procedure.

5. Jeucken, M (2009) "Sustainable Finance and Reduction in paper usage by issuing e-

Banking, The finance Sector and The Future of transaction advices to corporate customers &

the Planet". London, Earthscan. encouraging electronic statements among

6. Green Banking: IDRBT Publication, August retail customers.

2013.Various green initiatives such as distribution

7 Bhardwaj, Broto Rauth, and AarushiMalhotra. of tree saplings and creating awareness

Green Banking Initiatives of Bank of Baroda: *

*

Conclusion

*

*

*

References

Green Banking Initiatives by Bank of India:

*

*

*

17

March- June 2016

e-track

"Green Banking Strategies: Sustainability 11 Jain, Neetu."GREEN BANKING: A GROUND

through Corporate Entrepreneurship." BREAKING INITIATIVE FOR SUSTAINABLE

Greener Journal of Business and Management DEVELOPMENT." International Journal of

Studies ISSN: 2276-7827 Vol. 3 (4), pp. 180- logistics and Supply Chain Management

193, May 2013. Perspectives

8. A model of green bank marketing by 12 M o n e y c o n t r o l . c o m h t t p : / / w w w .

Constantine Lymperopoulos,Ioannis E. moneycontrol.com /stocks/top-companies-

Chaniotakis, MagdaliniSoureli © 2012 inindia/market-capitalisation-bse/banks-

Macmillan Publishers Ltd. 1363-0539 Journal private-sector.html

of Financial Services Marketing Vol. 17, 2, 13. A b o u t U s , H D F C B a n k , h t t p : / /

177-186 www.hdfcbank.com /aboutus Business

9 Jarin, Asma, Mohammad Rahat, and .Responsibility Report, HDFC Bank

Mohammad AbulKashem. "Eco-Banking 14 http://www.icicibank.com/aboutus/about-

Strategies for Competitive Advantages." us.html

European Journal of Bus iness and 15 h t t p : / / w w w . i c i c i b a n k . c o m / g o -

Management 6, no. 3 (2014): 84-91. green/Index.html

10 Islam, MdShafiqul, and Prahallad Chandra 16 http://www.bus iness-standard.com/

Das. "Green Banking practices in Bangladesh" article/beyondbusiness/for-banks-green-is-

IOSR Journal of Business and Management the-new-black-110052100014_1.ht

(IOSR-JBM) e-ISSN: 2278-487X.Volume 8,

Issue 3 (Mar.- Apr. 2013), PP 39-44 Author is Pratima Trivedi is chief faculty at

www.iosrjournals.org PNBIIT Lucknow, She is editor of e-track journal

Whatsapp for better customer service - a

Green banking initiative

A WhatsApp group of high net worth customers

can be made by the Branch Incumbents,

wherein they may be informed about bank's

new initiatives, also given personal attention

by gestures such as greetings on festivals that

would make them feel elite and important.

18

March- June 2016

e-track

GREEN BANKING: THE PAPERLESS BANKING

The word “Green Banking” is very common program” organized by a car manufacturer.

concept in the world. Global warming is a great Banks may tie with such corporate. These will

issue in protection of hygienic society. There is high help to brighten the image of the bank.

possibility of playing significant role of Green 3. Loans at Comparatively Lesser Rates: Banks Banking in the global warming issue. can also introduce green bank loans with

Green Banking refers to the banking business financial concessions for environment

conducted in selected area and manner that helps friendly products and projects such as fuel

the overall reduction of external carbon emission efficient vehicles, green building projects,

and internal carbon footprint. To aid the reduction housing and house furnishing loans to install

of external carbon emission, bank should finance solar energy system etc.

green technology and pollution reducing projects. 4. Environmental Standards for Lending: Banks Green finance as a part of Green Banking makes follow environmental standards for lending, is great contribution to the transition to resource really a good idea and it will make business efficient and low carbon industries i.e. green owners to change their business to industry and green economy in general. environmental friendly which is good for our

First Green Bank is a commercial bank based future generations.

in Mt. Dora, Florida, United States commenced its

operations in 2009.

1. Online Savings Account: Online savings

account and mobile banking is the easiest way

1. Avoids Paper Work: Paperless banking almost that can play part to bank green and help the

all banks in India are computerized or operate environment. Green banking includes setting

on a core banking solution (CBS). Thus there is up direct deposit to receive paycheques,

ample scope for the banks to adopt paperless receiving electronic statements from your

or less paper for office correspondence, bank and by paying bills online. All of these

audit, reporting etc. these banks can switch steps can drastically reduce the amount of

over to electronic correspondence and paper produced by bank. Online banking and

reporting thereby controlling deforestation. mobile banking are also highly effective ways

to keep track of finances and to avoid late 2. Creating Awareness to Business People payment fees. about Environment: Many NGOs and

env i ronmenta l i st s a re propagat ing 2. Paperless Statements: Sending out bank

environment consciousness among the statements by Post is a big waste of paper.

public in general by arranging awareness Signing up for online banking at most banks

programs and organizing seminars etc. Banks includes an option for customers to receive

may associate themselves by sponsoring such their statements electronically through a

programs. Besides, many corporate bodies secure log – in. Copies of banking records and

are organizing similar program in their own statements can then be stored electronically

line of business such as “free pollution check instead of in a filing cabinet. Receiving

Methods Adopting Green Banking

Benefits of Green Banking

- Ashwani Kumar

19

March- June 2016

e-track

statements electronically also reduces the audits in all their offices for effective energy

chance of identity theft. management. They can also switch over to

renewable energy (solar, wind, etc.) to 3. Use Direct Deposit: Most employers will give

manage their offices and ATMs.employees the option to receive their

paycheques electronically. Not only does this c. Using Mass Transportation System: PSBs can

speed up the availability of money and save a become fuel efficient organization by

trip to the bank, it saves paper, lots of paper providing common transport for group of

work etc. officials posted at one office.

4. Online Bill Payments: Paying bills online is d. Green Buildings: The Indian banking industry

something of a lifestyle change, but it can be uses more than one lakh premises for their

done. Telephone bills, cable bills, utility bills, offices and residential houses throughout the

credit card payments and mortgage country. These banks should develop and use

payments can all be paid electronically. Not green buildings for their office and employee

only is the recordkeeping much easier, but accommodation.

again massive amounts of paper is saved.

5. Net Banking: Online banking is when

customers perform most of their banking Financial institutions and banks in particular related functions without visiting the bank, have an important role to play in going green by personally. To do so, customers must possess contributing to the creation of a strong and an internet banking ID and a password successful low carbon economy. They should provided by the bank in which the individual expand the use of environmental information in the customer has an account. credit extension and investment decisions. The

endeavour will help them proactively improve their

environmental performance and creating long term

value for their business.a. Paper-less Banking: As banks have

computerized their branches, there is ample This concept of “Green Banking” will be

scope for doing paperless or less-paper mutually beneficial to the banks, industries and the

banking. Mostly PSBs use huge quantities of economy. Not only “Green Banking” will ensure the

paper for office correspondence, audit greening of the industries but it will also facilitate in

reporting, recording public transactions,etc. improving the asset quality of the banks in future.

These banks can switch over to electronic Overall Green banking is really a good way for

correspondence and reporting. Banks should people to get more awareness about global

encourage their customers also to switch over warming, consumers, employees, communities,

to electronic transactions and popularise e- stakeholders and all other members of the public

statements. sphere will contribute a lot to the environment and

b. Energy Consciousness: Developing energy- make this earth a better place to live.

consciousness, adopting effective office time

management and automation solutions and Author is Mr Ashwani Kumar IT Officer, using compact fluorescent lighting (CFL) can Punjab National Bank ,CO Mandi (H.P.)help banks save energy consumption

considerably. Banks can conduct energy

Conclusion

How Banks can contribute?

20

March- June 2016

e-track

ABSTRACT

NEED OF GREEN BANKING

I INTRODUCTION

CONCEPT OF GREEN BANKING

taking care of the Earth's

environment/ habitats/ Green Banking means ensuring environment

resources.friendly practices in banking sector and thereby

reducing internal and external carbon footprints. Green Banking is an umbrella

Broader view is having green criteria as a lending term referring to practices

principle. Banking industry is generally not and guidelines that make

considered as polluting industry. But it impacts the b a n k s s u s t a i n a b l e i n

environment in terms of increasing energy economic, environment, and

consumption (lighting, air conditioning), paper social dimensions. It aims to make banking

consumption processes and the use of IT and physical

infrastructure as efficient and effective as possible, Governments, enterprises, and people, all

with zero or minimal impact on the environment.have roles to play in combating global warming and

building a sustainable environment. A good thing is

that there is now greater awareness and a growing

commitment to address environmental problems Climate change is fundamentally altering the

we face. Bank is also not the exception for this. This landscape in which banks operate. More than any

article tries to find out the ways and technologies to other industry, the banking industry's assets are

Go Green through 'Green Banking' and what are the widely distributed across sectors and markets,

confronting challenges to Go Green concept in making it vulnerable to economic and political

banking sector.uncertainty caused by climate change. Through its

lending portfolio, a bank's total carbon footprint is

significantly larger than that of its own operational

activities. And yet, banks display little attention to

the impacts of their lending, underwriting, and The disastrous impact of recent storms, ownership activities. floods, droughts, and excessive heat that many

We believe that the banking industry has not people have experienced around the world,

successfully integrated climate change risk into its motivate us to think seriously about global warming

long-term strategic planning or understood the and its impact and to do whatever we can to address

implications of this game-changing phenomenon this problem (IDRBT, 2013).

for its business operations. The banking industry The idea of Green banking is like a normal needs to develop new financial models to foster its bank, which considers all the social and own long-term well-being and to help other environmental/ecological factors with an aim to businesses achieve sustainable growth. To achieve protect the environment and conserve natural this level of leadership, banks must come to a more resources. It is also called as an ethical bank or a comprehensive understanding of their own sustainable bank. They are controlled by the same environmental impact. They must accurately assess authorities but with an additional agenda toward risk levels in their lending models and develop

GREEN BANKING: AN EXPLORATION- Archana Sahai

21

March- June 2016

e-track

strategic management plans that consider climate green technology and pollution reduction

change and its implications for credit and risk projects to reduce external carbon emissions.

assessments The bank support industries that are resource

efficient and emit low carbon footprint. Considering the nature of banking processes

Priority is given to financing eco-friendly and infrastructures, guidelines for greening banking

business activities and energy efficient are:

industries such as waste water treatment 1. Greening Processes, Products, Services, and plant, waste disposal plants, bio-gas plants, Strategies: Making day-to-day business renewable energy projects, hybrid car operations, banking products and services projects and so on.greener by following simple practices and

making them environmentally friendly.

These include adopting appropriate ways to

use renewable energy, automation and

minimizing their carbon footprint. In the past Green Banking comes with a bundle of benefits

few years, all the banks have incorporated such as -

paperless technologies in their internal * Cash back will be credited to all existing

operations to help the environment as well as account holders shifting into Green.

provide their customers efficient and better * Cash back will be credited to all new services. In their day to day business customers opening 'Green accounts '.operations, banks ordinarily generate carbon

* Rationalization of paper use by giving free emissions through the usage of paper,

access to do all the banking transactions e lectr ic i ty, stat ionary, l ight ing , a ir

through Internet Banking, SMS Banking, conditioning and electronic equipment.

Phone Banking and ATM Banking.Green banking internal operations include on

* Free Electronic Bill Payment Services.line account opening, online banking, mobile

* E-Remit services for remitting funds to the banking, SMS banking, net banking, EFT as

customers' home country which is a unique well as the use of ATM, cash and cheque

service.deposit machines, credit and debit cards, e-

* E-Statement will be generated and sent to the statement SMS alert, image statement etc. customers' email.

2. Greening Infrastructure: Making IT * Online Account opening form for opening infrastructure (including data center) and

Green Account.p hy s i c a l i n f ra s t r u c t u r e ( i n c l u d i n g * Customer can opt for Go Green through buildings)greener and taking initiatives so

various channels through Online Banking, that a bank could itself generate electricity for Branches and Call Centre.its own consumption.

3. Green Finance: Green Finance refers to banks

that provide financial assistance to (1) Green loansenvironmentally responsible projects. The (2) Green credit cardspurpose is to provide financial assistance to

MAJOR BENEFITS OF GREEN BANKING TO

CUSTOMERS

II. GREEN BANKING PRODUCTS

22

March- June 2016

e-track

(3) Green CDs

(4) Online banking a) Cost optimization: Virtualization significantly

reduces cost by enhancing productivity of IT (5) Green saving accounts

administration, reclaiming network ports, (6) Mobile bankingsizing data center capacity for effective

Green banking helps to create effective utilization, etc. 'Hardware Consolidation',

solutions of a range of environmental problems and asenabled by virtualization, is an important

at the same time identify opportunities that benefit driver in reducing the cost.

the customers.b) Green IT/Reduced power consumption: IT

assets consolidation, as facilitated by

virtualization not only takes care of physical

resources, but also scales down the

requirement of resources leading to Virtualization can enhance green banking. significant saving of power.

Virtualization is the construct of Information c) Business agility and responsiveness: Technology (IT) assets that hides the tangibility of Virtualization is changing traditional, rigid, physical assets and boundaries from end users. An complex infra structure comprising of IT asset may either be a server, a client, storage, physical servers, storage, and networks into a networks, applications or Operating Systems virtual ecosystem that IT can utilize

(OS). Fundamentally, any IT building element dynamically to tackle new challenges, and can be abstracted from end users. open gates for new business opportunities.

Proven industry case studies advocate that Major business organizations have been able

virtualization helps in controlling cost as the to enhance IT scalability, manageability, and

business grows, but most importantly, it brings r e s p o n s i v e n e s s e x p o n e n t i a l l y b y

flexibility which provides an organization with an consolidating multiple IT physical assets into

added advantage. It helps to adjust swiftly and a fewer assets.

respond to dynamic market ecosystem. d) Speed up deployment: Less hardware implies Virtualization not only supports IT but enables less infrastructure elements on which newer businesses as it influences new forms of deployments need to be carried out. This is applications and is also used as an enabler of cloud achieved by replicating deployment on computing and helps in building mobility. virtualized IT assets with the help of host and

It helps in redefining boundaries between IT guess operating system concept.

components, platforms and operational processes e) Enhanced resiliency: Beyond tangible and supports business agility by empowering IT to benefits such as cost optimization, enable components across all platforms from organizations are also adopting virtualization mobile, desktops, servers and storage. It helps in for improved business continuity and disaster adoption of contemporary applications, trends and recovery (BC/DR).platforms at a greater speed, and does more with

limited resources.

III. TECHNOLOGIES THAT CAN SUPPORT

&ENHANCE GREEN BANKING

ADVANTAGES OF VIRTUALIZATION

1. VIRTUALIZATION

23

March- June 2016

e-track

2. CLOUD COMPUTING

ADVANTAGES OF CLOUD COMPUTING

IV. CHALLENGES TO GOING GREEN

*

*3. BYOD and MOBILITY

boundary of the office. Enterprise mobility

facilitates use of mobile devices and Businesses demands innovation, agility and technologies, enabling its workforce to flexibility of operations by reducing excessive remain connected to corporate resources, processes, technology overhead, IT overheads and partners, clients, suppliers etc. irrespective of maintenance operations. Cloud computing, their physical location or access network. In emerged as a key technology which enabled recent times, Enabling mobility requires a convenient, on-demand access to pool of combination of mobile devices, wireless configurable computing resources (e.g., networks, connectivity, applications and portals to servers, storage, applications and services) that can facilitate information exchange. Further, be rapidly provisioned. The foundation layer solutions for securing this information depends on the datacenter technologies and exchange by controlling access to corporate hardware, which make use of virtualization. Cloud resources and authenticating devices, or offers benefits for all type of business securing the device or applications are requirements.required. With mobility, the enterprise data

and information will be increasingly accessed

from outside its physical boundary.a. Consolidation of hardware & software,

This adds to the challenges of IT function as servers, storage, networks and operating they now need to secure transactions and system through its Infrastructure as a service interaction on the mobility platform. The (IaaS) model.devices used may either be purchased by the

b. Availability of platform to businesses through end user themselves, or be corporate owned

sets of tools and services designed to offer or partly financed by the organization.

d e v e l o p m e n t a n d d e p l o y m e n t o f However, in all cases safeguards have to be

applications through Platform as a service built into the mobility architecture to ensure

(PaaS) Model.protection against the ever-changing security

c. Ability to offer applications designed for landscape.consumers/end user delivered over the web

through Software asa service (SaaS) Model.

Cloud computing is considered as an DIVERSIFICATION ISSUES: Green banks extension to virtualization, where the restrict their business transactions to those hardware used to deliver the virtualized business entities who qualify screening instances is not owned by organization but by process done by green banks. With limited a third-party and the instances are accessed number of customers they will have a smaller through a service model.base to support them.

STARTUP FACE: Many banks in green business

are very new and are in startup face, generally The need for BYOD and mobility arises with it takes 3 to 4 years for a bank to start making the demand from users and business groups money thus it does not help banks during to compute and communicate using devices recession. of their choice, in and out of the physical

24

March- June 2016

e-track

*

*

*

REFERENCES

OTHER REASONS:-

CONCLUSION

HIGHER OPERATING COST: Green banks opportunities, and improve data collection and

require talented, experienced staff to provide reporting. It should be the responsibility of Banking,

proper services to customers. Experienced Financial Services, and Insurance (BFSI) sector to

loan officers are needed with additional work together in creating a greener and sustainable

experience in dealing with green businesses environment. Banks are responsible corporate

and customers. citizens. Banks believe that every small 'GREEN'

step taken today would go a long way in building a REPUTATIONAL RISK: If banks are involved in greener future and that each one of them can work those projects which are damaging the towards to better global environment. So Green environment they are prone to loss of their banking will help in creating awareness to business reputations. There are also few cases where people about environmental and social environmental management system has responsib i l i ty enabl ing them to do an resulted in cost saving, increase in bond environmental friendly business practice. Still a lot value. of channels are unutilized by the Indian banks for

CREDIT RISK: Credit risks arise due to lending greening their activities. Moreover they could

to those customers whose businesses are adopt the green practices only in selected branches

affected by the cost of pollution, changes in due to many existing challenges.

environmental regulations and new

requirements on emission levels. It is higher

due to probability of customer default as a

result of uncalculated expenses for capital [1] S t a r o g i a n n i s , D ( 2 0 0 6 ) " W h a t i s

investment in production facilities, loss of Environmental Responsibility of Banks" UNEP

FI Conference, June. market share and third party claims.

[2] Green Banking Framework (2013) by IDRBT

[3] A STUDY OF GREEN BANKING TRENDS IN

INDIA by Dr. Nishikant Jha1 and Shraddha a. Lack of RBI mandates as main barrier to

Bhome2adopting sustainability.

[4] Annual report of State Bank of India 2013-14. b. Majority of banks identified 'risk of failure of [5] Jha N., Bhome S. (2013). A study of green

business to peers'. banking trends in India. International

c. Unavailability of skilled employees. Monthly Refereed Journal of Research In

Management & Technology. Vol-2; May ISSN - d. Insufficient budget to train employees. 2320-0073

e. Complex reporting framework [6] Ray Vareen, 'A Green Dream', 4P's Business

f. Lack of interest shown by customers and and Marketing, 21 Nov to 4 Dec 2008. investors

[7] Leslie D Monte, 'It's Times for Green Banking',

Business Standard, May 21, 2010.

[8] IDRBT Publication, August 2013

Understanding and measuring embedded

climate risk is critical for long term-oriented Author is Archana Sahai, asahai@amity.eduinvestors. We must urge banks to develop strategic Asst. Professor, AII , Amity University,

Lucknow Campusclimate management plans, seize new market

25

March- June 2016

e-track

Change is the need of hour to for survival in To avoid falling into similar trap, the impulse

all spheres. The world has seen much focus on of 'going green' is running faster than blood in

economic progress and mankind has made giant Indian Incorporations veins. From IT giants to

steps in its journey through time. The side effects of luxurious hotels, from Automobiles to Aviations,

the development process have, however, also been from Mutual Funds to Banks corporate India is

equally enormous loss of biodiversity, climatic moving fanatically ahead with green initiatives.

change, environmental damage, etc. Bank is also As a responsible financial organization of the not the exception for this. This paper tries to find country with its crucial role in financing the out the ways to go Green through 'Green Banking'. economic and developmental activities of the Generally, the banks are using 1. Online banking country, banks have to play in addressing the above instead of branch banking. 2. Paying bills online issues, both in terms of its obligations and instead of mailing them. 3. Opening up accounts at opportunities by virtue as a responsible corporate online banks, instead of large multi-branch banks 4. citizen and as a financier.Finding the local bank in your area that is taking the

Green Banking is like a normal bank, which biggest steps to support local green initiatives

considers all the social and environmental factors; it Environmentalism is a broad philosophy and is also called as an ethical bank. Ethical banks have

social movement regarding concerns for started with the aim of protecting the environment. environmental conservation and improvement of These banks are like a normal bank which aims to the state of the environment. Environmentalism protect the environment and it is controlled by and environmental concerns are often represented same authorities as what a traditional bank do. by the color 'green'. Global warming, also called as Green banking is like a normal bank, which “Green House Effect” is a global issue that calls for a considers all the social and environmental/ global response. The warming effect of certain ecological factors with an aim to protect the man-made gas emission such as carbon-dioxide, environment and conserve natural resources. It is methane, nitrous oxide and hydro-fluro carbon is also called as an ethical bank or a sustainable bank. found responsible for distortion in climate changes. They are controlled by the same authorities but The rapid change in climate will probably be too with an additional agenda toward taking care of the great to allow many eco systems to suitably adapt, Earth's environment / habitats / resources. For since the changes have direct impact on bio banking professionals green banking involves the diversity, agriculture, forestry, dry land, water tenets of sustainability, ethical lending, resources and human health. However, there is conservation and energy efficiency. general lack of adequate awareness on the above

There are many differences compared with issues and hence there is urgent need to promote

normal banking, Green Banks give more weight to certain urgent measures for sustainable

environmental factors, their aim is to provide good development and corporate social responsibility.

environmental and social business practice, they “The supreme reality of our time is… the check all the factors before lending a loan, whether

vulnerability of our Planet.” - John F. Kennedy the project is environmental friendly and has any

A STUDY OF GREEN BANKING TRENDS IN INDIA

26

March- June 2016

e-track

implications in the future, you will awarded a loan Basically Green banking avoids as much paper

only when you follow all the environmental safety work as possible and rely on online/ electronic

standards. transactions for processing so that we get green

credit cards and green mortgages. Less paperwork Defining green banking is relatively easy. means less cutting of trees. It also involves creating Green Banking means promoting environmental – awareness to banking business people about friendly practices and reducing your carbon environmental and social responsibility enabling footprint from your banking activities. This comes in them to do an environmental friendly business many forms practice.

Using online banking instead of branch Green Ethical banks adopt and implement banking. environmental standards for lending, which is

Paying bills online instead of mailing them. really a proactive idea that would enable eco-

Opening up accounts at online banks, instead friendly business practices which would of large multi-branch banks benefit our future generations.

Finding the local bank in your area that is When we are awarded with a loan, the taking the biggest steps to support local green interest of that loan is comparatively less with initiatives. normal banks because green banks give more

Green banking can benefit the environment importance to environmental friendly factors

either by reducing the carbon footprint of - ecological gains.

consumers or banks. Either a bank or a consumer Natural resources conservation is also one of can conserve paper and benefit the environment. the underlying principles in a green bank Ideally, a green banking initiative will involve both. while assessing capital/operating loans to Online banking is an example of this. When a bank's extracting/industrial business sector. customer goes online, the environmental benefits

Green banking as a concept is a proactive and work both ways. Green banking means combining

smart way of thinking with a vision for future operational improvements and technology and

sustainability of our only Spaceship Earth - as changing client habits.

design science explorer Richard Buckminster

Fuller called our Earth.

* The value proposition for corporations to go

Go Online green includes many of the same issues as

that for individual consumers but on a much Use Green Checking Accountslarge scope and with additional concerns.

Use Green Loans for Home ImprovementsCorporations may share a desire to reduce

Power Savings Equipments carbon footprint and enhance security by

Use Green Credit Cards eliminating paper waste, but they are also

extremely concerned with Save Paper

* Eliminating or decreasing errors due to Use of Solar and Wind Energymanual processing and with creating a

Mobile Bankingprofitable bottom line. For these reasons and

**

*

*

* *

*

*

Steps in Green Banking-

*

*

*

*

*

*

*

*

27

March- June 2016

e-track

more, corporations are actively pursuing prevalent, not only among smaller alternative and

green programs, many companies are taking cooperative banks, but also among diversified

active steps to reduce waste, implement financial service providers, asset management

sustainability measures and increase firms and insurance companies. Although these

profitability by going green. companies may differ with regard to their stated

motivations for increasing green products and Banks are responsible corporate citizens. services (e.g. to enhance long-term growth Banks believe that every small 'GREEN' step taken prospects, or sustainability principles on which a today would go a long way in building a greener firm is based), the growth, variation and innovation future and that each one of them can work towards behind such developments indicate that we are in to better global environment. 'Go Green' is an the midst of a promising drive towards integrating organization wide initiative that moving banks, green financial products into mainstream banking. their processes and their customers to cost efficient

automated channels to build awareness and This concept of “Green Banking” will be

consciousness of environment, nation and society mutually beneficial to the banks, industries and the

Green Banking can give following benefits. economy. Not only “Green Banking” will ensure the

greening of the industries but it will also facilitate in * Basically Ethical banking avoids as much as improving the asset quality of the banks in future.paper work, you get go green credit cards, go

green mortgages and also all the transactions

done through online Banking.

* Creating awareness to business people about * Leslie D Monte, 'It's Times for Green Banking', environmental and social responsibility Business Standard, May 21, 2010. enabling them to do an environmental

* Ritwik Mukherjee, 'SBI launches green policy friendly business practice.

for paperless banking', Financial Chronicle, * They follow environmental standards for August 27, 2010.

lending, which is really a good idea and it will * Bank ing and F inanc ia l Markets in

make business owners to change their Maharashtra 1947 to 2007 by Niti Bhasin New

business to environmental friendly which is Century publication, New Delhi, June 2007

good for our future generations. edition.

Overall Green banking is really a good way for * Jeucken, M (2001) “Sustainable Finance and

people to get more awareness about global Banking, The finance Sector and The Future of

warming; each businessman will contribute a lot to the Planet”. London, Earth scan

the environment and make this earth a better place

to live. Thanks to green banking. Until a few years Author is Mr Shubhanshu Misraago, most traditional banks did not practice green

student, CCBT (2015) at PNBIIT Lucknowbanking or actively seek investment opportunities

in environmentally-friendly sectors or businesses.

Only recently have these strategies become more

REFERENCES

28

March- June 2016

e-track

Introduction:-

Green Banking………..???

Go Online And Save Paper

In the recent past we have witnessed some

nasty natural calamities such as Jun 2013

Uttarakhand tragedy. Many more floods, storms

and draught have been experienced around the

world. These are the results of natural imbalances

caused due to global warming, a problem which the

world is facing today. The problem needs

immediate action on the part of government,

enterprise and the people as part of the society.

Inaction to arrest environmental degradation

would significantly affect not only current but also

future generations and our further progress. So, a

proactive multipronged action is necessary by all

the industry and business sectors, regulatory

agencies and the individuals.

practices.

* Paying BILLS ON-LINE rather than queuing up

for and mailing them. Green Banking is an answer to the question "

What can and should a bank alone and in unison * Opening accounts online adopting E-KYC

with others do to save the environment?" Save rather than brick-mortar multiple-branch

ecology is "The GO GREEN MANTRA" of life in all banking.

spheres in the present day world. Green Banking * Purchasing/ shopping/ ticketing on line means promoting environmental- friendly practices 24*7*365 initiatives. and reducing the carbon footprints from banking

* Green infrastructure, processes, products, activities. "GO GREEN" in the banking sector, varies

loans and depositsfrom day to day paperless banking operations to

lending to the companies involved in renewable

energy resources. As part of its corporate social

responsibility (CSR), the banking sector is required

Online banking is the recent concept and fast to spend 1% of its profits for the welfare of the

changing development in young and vive rant India. society parallel to adopting the green banking

Online banking helps in conservation of energy and worldwide as additional responsibility. The Green

natural resources. Online Banking includes paying banking initiatives encompasses:-

bills online, remote deposit, online fund transfers * Switching over to ON-LINE BANKING and and online statements. It creates savings from less biding adieu to hither to branch banking

Greening of banking operation:-

GREEN BANKING : AN OVERVIEW-Rasika Saini

29

March- June 2016

e-track

paper, less energy, and less exploitation of natural from withdrawal to receipts without filling any

resources from banking activities. Present day on form. Shopping has become just fun round the

line banking enables anywhere - anytime. Banking clock ie. 24*7. Carrying cash may become history in

sector worldwide has enabled green banking the near future. No printing bills/invoices is

through various touch-points. These touch points required now; you get mails/texts of your shopping.

are:- This all has been possible by finding out

Branch- The erstwhile branch banking has been solutions to replace paper in all sorts of activity in

replaced with newer software solution such as banks in maintaining records in big and heavy books

FINACLE. The banks/branches has been networked. of accounts, issuing of truck loads of circulars to its

branches spread all over the world. This has ATM - Automated Teller Machine. Not much time

resulted in saving trees, the flora & the fauna, the has gone by when we had only the note dispenser

life line of this earth.ATMs. Now, we have Note acceptor machines,

cheque acceptor machines etc. All the banking

activities can be undertaken from an ATM.

Like any other enterprises, as consumers of Internet Banking- All the banking activities can be natural resources, banks directly interact with the carried out by the customer himself through environment. For instance, banks contribute internet. What he is required to do is to have an ID towards the carbon emission directly in their day-and password into the banking network and access to-day operations in terms of use of paper, his account.electricity, lighting, air conditioning, electronic Mobile Banking - Mobile banking is the order of the equipment and other things, although this is day and is fast multiplying. It is spreading and moderate compared to other carbon sensitive catching up almost all aspects of banking.industries like steel, oil and gas, etc. Banks affect the

Credit / Debit Cards- Payments / Purchases made environment indirectly by financing intermediaries

simple. No Handling of paper / soiled notes. This is who are the major source of long term funding to

also known as plastic money. Credit card is also various industries that pollute the environment

known as buy now - pay later and debit card as pay heavily. Hence, it is imperative to understand the

later-buy later.need for sustainable practices for banking.

Many mobile apps are now the commonest in

the market and all sort of banking activities can be

carried out by one touch of a button. For example: On its own part banks can formulate BOI'S BTM, SBI'S FREEDOM, PNB'S MBANKING,

strategies to optimally use its resources. Set targets UBI'S UMOBILE and many more. Green banking and conduct audits. The consumption of electricity solution adopted worldwide has made the life so should be reduced to the minimum level. Air simple so free flowing that recharge of mobiles, TV condoners, computers, lights and fans should be connections, payment of bills, filling of returns has used as per need. The good thing in this aspect is become more or less the games to be played on the that some of the Indian banks have introduced multi media. Some of the banks have even come out electricity audit and have issued instruction on with the solution such as NO QUEUE BANKING, i.e control of expenses.

Other Methods of Green Banking

Greening of infrastructure

30

March- June 2016

e-track

Greening of banks loans /deposits Conclusion:

Some Examples of green banking funding by Banks

Use of Solar and Wind Energy:

References:Green Loans for Home Improvements:

Banks may provide loans with concessions to Banks are responsible corporate citizens.

corporate or individuals who undertake Banks believe that every small 'GREEN' step taken

Environment - friendly projects such as projects today would go a long way in building a greener

employing sun, wind equipment, manufacturers of future and that each one of them can work towards

fuel-efficient automobiles. Banks can introduce the better global environment. 'Go Green' is an

green funds for customers who would like to invest organization wide initiative that is moving banks,

in environment-friendly projects. Banks can their processes and their customers to cost efficient

involve themselves in carbon credit business, automated channels to build awareness and

wherein they can provide all the services in the area consciousness of environment, nation and society.

of clean development mechanisms and carbon Thus, the banks should play a pro-active role to take

credit business. Banks can support projects ranging environmental and ecological aspects as part of

from community cleanups to national initiatives on their lending principle which would force industries

climate change, water, air, biodiversity and more. to go for mandated investment for environmental

management, use of appropriate technologies and

management systems. Green Banking if

implemented sincerely will act as an effective

deterrent for the polluting industries that give a Using solar and wind energy is one of the pass by to other institutional regulatory noble cause for going green. State Bank of India mechanisms. This concept of "Green Banking" will (SBI) has become the first bank in the country to be mutually beneficial to the banks, industries and venture into generation of green power by installing the economy. Not only "Green Banking" will ensure windmills for captive use. As part of its green the greening of the industries but it will also banking initiative, SBI has installed 10 windmills facilitate in improving the asset quality of the banks with an aggregate capacity of 15 MW in the states of in future.Tamil Nadu, Maharashtra and Gujarat.

* Ray Vareen, 'A Green Dream', 4P's Business The Ministry of Non-renewable Resource in and Marketing

association with some nationalized and scheduled * Leslie D Monte, 'It's Times for Green Banking',

banks undertook an initiative to go green by giving Business Standard.

low interest loans to the customers who would like * Ritwik Mukherjee, 'SBI launches green policy

for paperless banking', Financial Chronicle.to buy solar equipments. The rate of interest is as

* GREEN BANKING IN INDIA, Pravakar Sahoo & low as 4% p.a. Before you undertake a major home Bibhu Prasad Nayaki.improvement project, study if the project can be

* GREEN BANKING, Institute of development & done in an eco-friendly manner and if you might research in banking technology (IDRBT).qualify for a green loan from a bank. Green loan are

perfect for energy-saving project around the house.Author is Ms Rasika Saini,

ADBT IX batch, working as Asst Manager, HP

31

March- June 2016

e-track

INTRODUCTION

GREENING IT INFRASTRUCTURE

partnership established between the United

Nations Environment Program (UNEP) and the The disastrous impact of recent storms, financial sector. It works closely with over 200 floods, droughts, and excessive heat that many members including leading banks, investment people have experienced around the world, funds, and insurance companies to develop and motivate us to think seriously about global warming promote linkages between sustainability and and its impact and to do whatever we can to financial performance.address this problem. Governments, enterprises,

and people, all have roles to play in combating The Equator Principles are a set of voluntary

global warming and building a sustainable guidelines for the categorization, assessment and

environment. A good thing is that there is now management of social and environmental risks in

greater awareness and a growing commitment to project financing. The EPs are based on the

address environmental problems we face. Inaction International Finance Corporation Performance

to arrest environmental degradation would Standards on social and environmental

significantly affect not only current but also future sustainability and on the World Bank Group

generations and our further progress. So, a Environmental, Health, and Safety (EHS)

proactive multipronged action is necessary by all Guidelines. Currently, 78 financial institutions in 32

the industry and business sectors, regulatory countries have officially adopted the EPs, covering

agencies and the individuals. What can, and should, over 70 percent of international Project Finance

Banking, Financial Services, and Insurance (BFSI) debt in emerging markets. The EPs have promoted

sector do in creating a greener and sustainable convergence around common environmental and

environment? What can each person in the BFSI social standards. In December 2007, the Reserve

sector do individually and collectively to address Bank of India (RBI) issued a circular (RBI 2007-

global warming and create a sustainable 2008/216) highlighting the importance for banks to

environment? Internationally, there are several act responsibly and contribute to sustainable

initiatives to create a common protocol to manage development and emphasizing the need for Indian

environmental concerns. banks to establish institutional mechanisms to

enshrine sustainability.A m o n g t h e m t h e U n i t e d N a t i o n s

Environment Program Finance Initiative (UNEP FI)

and the Equator Principles (EPs) are the two key

initiatives. The United Nations Environment Going green is more than just a social

Programme Finance Initiative (UNEP FI) seeks to incentive. Making a bank's infrastructure (including

encourage better implementation of sustainability physical and IT) more environmentally friendly can

principles at all levels of operations in financial also reduce costs significantly. In today's

institutions, namely through the incorporation of environment, all banks are computerized. In this IT-

environmental, social, and governance factors in enabled environment, bankers should make use of

risk analyses. This initiative is a public-private these IT resources in an eco-friendly manner.

GREEN BANKINGPratyusha Manjari Singh

32

March- June 2016

e-track

Following are some of the guidelines for greening Many aspects of applications that run on a system

the use of laptops, desktop computers, and servers impacts power consumption. The following

in a bank. guidelines will help in optimizing the energy

consumption: The background processes and other According to various studies, quite a lot of applications which are not being used are kept energy is wasted in a laptop when the laptop is running to keep the processor active, thus resulting being charged. The chargers step down the voltage in energy wastage. So, when an application is not in and convert the AC to DC. This happens as long as use, close the application and also stop the the charger is connected to the power socket, background processes that are not being used.irrespective of whether the laptop is connected to

the charger or not, thus resulting in waste of energy. Multitasking is a tradeoff between CPU time

Hence, it is very important to switch off the power spent executing tasks and inefficiencies brought in

supply when it is not in use. There are green by context switching. When a task starts running

chargers in the market, which can detect whether a slower than it would normally run, one of the likely

charger is connected to a notebook computer or causes is due to inefficiencies owing to context

any other device, and reduce the power switching. It is advisable to reduce the number of

consumption when a charger is not connected to a tasks when such slowing down is noticed. The more

device. the processes that are set to start at startup, the

more the amount of time the laptop needs to boot Monitors consume about 20 to 30% of the up, thus resulting in more unproductive time for the total energy used by a laptop; hence it is important processor and the monitor. So, keep the number of to reduce the power consumption of the monitors. processes that start at the startup of the computer Strategies that helpto a minimum. The required applications can be

in reducing the power consumption of started when needed. The peripheral devices that

monitors include: Reduce the brightness of the are connected to the computer also consume

monitor to the appropriate level. A brighter screen energy, even though they might not be in active use.

consumes more energy. When some background For example, devices connected to the USB ports in

task is running in the computer and there is no need a computer draw power even when the device is

to use the monitor during this time, switch off the not in use.

monitor instead of using screen savers as screen Most laptops today are provided with power savers also consume some energy.

management features and software. The power Most of the computer operating systems

management software can help in regulating the provide Greening Use of Laptops, Desktop

use of the battery and electric power. It monitors Computers, and Servers power saving profiles

the load on the hard disk, the activities on the which when enabled, reduces the amount of

laptop, and the ambient brightness and changes energy consumed by the computer. For example,

the various settings in the computer to make when the laptop is starting up or when the laptop is

optimal use of power. The software also allows shutting down, these applications reduce the

users to set timings for the computers to screen brightness to a minimum. The processors of

automatically go to standby or hibernate mode. A laptop also consume a lot of power particularly

typical desktop uses about 115 Watts of power. CRT when carrying out computationally-intensive tasks.

33

March- June 2016

e-track

monitors were the primary output device used in and centrally', power down desktops. They also

the desktop PCs till a few years back. CRT monitors allow enterprises to apply power schemes at

consume a lot of energy and are inefficient. It also different times in multiple locations, globally from a

contains a lot of environmentally sensitive single console, maximizing power savings without

materials. LCD and LED monitors are energy impacting users. Though there might be resistance

efficient and small in size. The power management from employees to the implementation of such

systems and techniques for monitors that were systems, it is important to make the employees

described on laptops also holds good for desktops. understand the benefits and advantages of the

system and then implement solutions. Servers are The processors used in desktops consume a computers designed to serve the needs of other lot more power than their laptop counterparts. The computers. In general, server computers run one or processor and hard disk power optimization more services that will be used by other computers techniques that were used in the laptops also apply in the network. They have powerful CPUs and have here. In many cases, desktops are kept always on, so large amount of memory RAM. They are ON most of that it can be remotely accessed from a laptop or the time and in most cases redundant servers are some other desktop. In most cases, desktops are used to provide increased reliability. These servers left switched on 24×7 even during holidays. Hence, are generally placed in data centers. Servers in most of the time desktops remain idle and waste a general generate a large amount of heat due to lot of energy. To avoid having to leave the desktops large power consumption by servers and hence switched on all the time, we could use remote wake they require better cooling mechanisms. The up methodologies. In banks, where there are many energy efficiency aspects of servers are discussed in desktops in use, it is important to globally monitor detail in Greening Data Centers section.the usage of all the desktops to get a holistic picture

on the usage efficiency of the desktops. Tools like

Night, 'The Energy Detective' (TED),'eMonitor'

(www.powerhousedynamics.com) and 'Conserve Some green banking initiatives worldwide

Insight' help managers in assessing the power usage include:

trends of\ many of their desktops over time by 1. Paperless statements, bills and annual monitoring the usage trends and presenting the

reports.data in the form of a dashboard.

2. Donations to conservation charities as an Banks also need management tools, which incentive for choosing green products.allow remote control of desktops. Though most

3. Special line of credit to homeowners for operating systems have group policies, which allow

investment in energy-efficient upgrades. certain configurations to be enforced on the

Listed below are some proactive initiatives of desktops, they are not as effective as management

banks globally.tools which allow granular control over the

desktops. Tools like 'Night Watchman' help 4. Canadian banks have adopted the Equator

enterprises have more control over the desktops. Principles, a set of globally recognized,

These tools allow enterprises 'securely, remotely voluntary guidelines established to assess

CURRENT SCENARIO

34

March- June 2016

e-track

and manage social and environmental risk in social and environmental issues relating to its

project financing. operations. Green Coin Rating will be in line as

energy star rating given for appliances. Banks will be 5. At the end of 2010, green credit issued by judged based on the rate of carbon emission out of Bank of China exceeded RMB 190 billion with their operations, the amount of reuse, refurbish new issuances up by more than 40 billion. At and recycling concept being used in their building the end of 2011, China Development Bank furnishings and in the systems used by them such as had lent 658 billion Yuan to energy-saving, computers, servers, networks, printers, etc. They emission-reducing projects, accounting for are also being evaluated on the number of green 12.7% of the bank's total outstanding loans.projects being financed by them and the amount of

6. China Development Bank Corp, which rewards and recognition they are paying for turning

finances over 50% of overseas projects of businesses green.

Chinese enterprises, has financed a Chinese The primary objectives behind Green Coin company \ that operates an iron ore mine in Rating are as follows:Africa. These funds are apparently utilized to

move surface soil to a place of safety to * Improving the energy and carbon efficiency of

protect local flora. bank.

7. The State Bank of India has introduced * To estimate energy usage and wastage.

"green channel counters" and "no queue * Comparative assessment of banks and its banking" in over 5,000 branches across India, products efficiency for the customers and doing away with deposit slips. other

* stakeholders in relation to environment

impact assessment.

* Recognize and reward the environment-

conscious financial institutions.Green banking can be an avenue to reduce

pollution and save the environment aiding * Financial institutions and banks in particular

sustainable economic growth. Green Banking is a have an important role to play in going green

multi-stakeholders' endeavour where banks have by contributing to the creation of a strong and

to work closely with government, NGOs, regulator, successful low carbon economy. They should

consumers, and business communities to reach the expand the use of environmental information

goal. We propose the introduction of standard in the credit extension and investment

rating for green efficient banks and banking decisions. The endeavor will help them

practices among Indian Banks. Under this rating proactively improve their environmental

system, both the infrastructure and operations of performance and creating long term value for

the banks are being considered. We have coined the their business.

term of Green Rating Standard as "Green Coin * Even the customers want ecologically friendly Rating". Banks' primary business must not be products and services to reduce their impact money making only, but it should also keep in mind on the environment. The banks going green in

FOSTERING GREEN BANKING

GREEN BANKING FOR INDIAN BANKING SECTOR

35

March- June 2016

e-track

the technologies and services that they are also in practice. It is now expected from all

providing, will not only save their energy and scheduled banks that they would not only allocate

water consumption but will also appraise budget for green finance, green event or green

them in the eyes of environment supporting projects under CSR activities, green marketing and

customers. capacity building but ensure the efficient utilization

of budget allocation. Finally we can say that going The Green approach adopted by the banks will green should be the motto of all commercial banks. impact the customers in the following ways:

1. Institute of banking and research in banking * Better choice for customers and businesses.technology

* Customers will be attracted to relationship-2. www.thehindubusinessline.com/industry-driven approach built on foundation of core

and-economy/banking/article2162243.ecevalues designed to enhance environmental,

social, and f inancial well being of 3. www.energyfactcheck.org /s l ideshow

communities. /renewable-energy-is-a-bad-investment-

a n d - m a j o r - b a n ks - a n d - i n st i t u t i o n a l -* Active lending to sustainable businesses.investors-are-cutting-back-their-clean-tech-

* Green credit being provided to the portfolios-the-only-capital-available-for-the-

customers.renewable-sector-is-from-american-tax/

4. National Geographic (2007), Global Warming

Fast Facts, Available at http://news.

There is definitely a huge opportunity for nationalgeographic.com/news/2004/12/120

investing in clean, renewable energy technologies. 6_041206_global_warming.html

The entire government machinery and the

regulatory bodies need to work in tandem to bring Author is Ms Pratusha Manjari

about this shift in the market, and banks being an student of course (CCBT 2015) PNBIIT

integral part of our economy, must lead from the

front.

Green Banking has become a buzz word in

today's banking world. For going green products,

electronic compliances, motor vehicles etc. for eco

friendly atmosphere. Automation and improved in

house green activities, required and rigorous

training program for top/mid/lower level

management and at the same time clients as well

need to be carried on. Board/Competent authority

should be aware and updated of the current green

banking activities and development. Green

Banking now is not only limited to awareness but

CONCLUSION

36

March- June 2016

e-track

Ransomware is a Payloads may display a fake warning purportedly by

type of malware that restricts an entity such as a law enforcement agency, falsely

access to the infected claiming that the system has been used for illegal

computer system in some activities, contains content such as pornography

way, and demands that the and "pirated" media, or runs a non-genuine version

user pay a ransom to the of Microsoft Windows.

malware operators to remove Some payloads consist simply of an the restriction. Some forms of application designed to lock or restrict the system ransomware systematically until payment is made, typically by setting the

encrypt files on the system's hard drive, which Windows Shell to itself, or even modifying the become difficult or impossible to decrypt without master boot record and/or partition table to paying the ransom for the encryption key, while prevent the operating system from booting until it is some may simply lock the system and display repaired. The most sophisticated payloads encrypt messages intended to coax the user into paying. files, with many using strong encryption to encrypt Ransomware typically propagates as a trojan, the victim's files in such a way that only the malware whose payload is disguised as a seemingly author has the needed decryption key.legitimate file; thus, ransomware is an access-

Payment is virtually always the goal, and the denial type of attack that prevents legitimate users

victim is coerced into paying for the ransomware to from accessing files.

be removed which may or may not actually occur While initially popular in Russia, the use of either by supplying a program that can decrypt the

ransomware scams has grown internationally; in files, or by sending an unlock code that undoes the June 2013, security software vendor McAfee payload's changes. A key element in making released data showing that it had collected over ransomware work for the attacker is a convenient 250,000 unique samples of ransomware in the first untraceable payment system. A range of such quarter of 2013, more than double the number it payment methods have been used, including: wire had obtained in the first quarter of 2012. Wide- transfer, premium-rate text messages, online ranging attacks involving encryption-based payment voucher service such as Ukash or ransomware began to increase through trojans Paysafecard, and the digital currency Bitcoin. such as CryptoLocker, which had procured an

estimated US$3 million before it was taken down by

authorities, and Cryptowall, which was estimated Reveton: In 2012, a major ransomware trojan by the US Federal Bureau of Investigation (FBI) to

known as Reveton began to spread. Based on the have accrued over $18m by June 2015. Citadel trojan (which itself, is based on the Zeus Ransomware typically propagates as a trojan), its payload displays a warning purportedly trojan, entering a system through, for example, a from a law enforcement agency (a characteristic downloaded file or a vulnerability in a network referred to as the "police trojan" or "cop trojan"), service. The program then runs a payload, which claiming that the computer has been used for illegal typically takes the form of a scareware program. activities, such as downloading pirated software or

Notable examples:

Beware the Rise of Ransomware- Madhu Bhandari

37

March- June 2016

e-track

child pornography. The warning informs the user CryptoLocker was isolated by the seizure of

that to unlock their system, they would have to pay the Gameover ZeuS botnet, as officially announced

a fine using a voucher from an anonymous prepaid by the U.S. Department of Justice on June 2, 2014.

cash service such as Ukash or Paysafecard. To The Department of Justice also publicly issued an

increase the illusion that the computer is being indictment against the Russian hacker Evgeniy

tracked by law enforcement, the screen also Bogachev for his alleged involvement in the botnet.

displays the computer's IP address, while some It was estimated that at least US$3 million was

versions display footage from a victim's webcam to extorted with the malware before the shutdown.

give the illusion that the user is being recorded.

Reveton initially began spreading in various

European countries in early 2012. Variants were In September 2014, a wave of ransomware

localized with templates branded with the logos of trojans surfaced that first targeted users in

different law enforcement organizations based on Australia, under the names Crypto Wall and

the user's country; for example, variants used in the CryptoLocker (which is, as with CryptoLocker 2.0,

United Kingdom contained the branding of unrelated to the original CryptoLocker). The trojans

organizations such as the Metropolitan Police spread via fraudulent e-mails claiming to be failed

Service, the collection society PRS for Music (which parcel delivery notices from Australia Post; to evade

specifically accused the user of illegally detection by automatic e-mail scanners that follow

downloading music), and the Police National E-all links on a page to scan for malware, this variant

Crime Unit. In a statement warning the public about was designed to require users to visit a web page

the malware, the Metropolitan Police clarified that and enter a CAPTCHA code before the payload is

they would never lock a computer in such a way as actually downloaded, preventing such automated

part of an investigation.processes from being able to scan the payload.

Symantec determined that these new variants,

which it identified as CryptoLocker.F, were again,

unrelated to the original CryptoLocker due to Encrypting ransomware reappeared in differences in their operation. A notable victim of September 2013 with a trojan known as the trojans was the Australian Broadcasting CryptoLocker, which generated a 2048-bit RSA key Corporation; live programming on its television pair and uploaded in turn to a command-and-news channel ABC News 24 was disrupted for half control server, and used to encrypt files using a an hour and shifted to Melbourne studios due to a whitelist of specific file extensions. The malware CryptoWall infection on computers at its Sydney threatened to delete the private key if a payment of studio. Bitcoin or a pre-paid cash voucher was not made

within 3 days of the infection. Due to the extremely Another trojan in this wave, Torrent Locker,

large key size it uses, analysts and those affected by initially contained a design flaw comparable to

the trojan considered CryptoLocker extremely Crypto Defense; it used the same key stream for

difficult to repair. Even after the deadline passed, every infected computer, making the encryption

the private key could still be obtained using an trivial to overcome. However, this flaw was later

online tool, but the price would increase to 10 BTC- fixed. By late-November 2014, it was estimated that

approximately US$2300 as of November 2013. over 9,000 users had been infected by Torrent

CryptoLocker. F and TorrentLocker:

Crypto Locker:

38

March- June 2016

e-track

Locker in Australia alone, trailing only Turkey with that is disguised as a Rich Text File. The virus sleeps

11,700 infections. for three days, then starts to encrypt the files. It

adds a text document for instructions on how to

decrypt the files. It uses 2048-RSA public key to

encrypt the files. It actually is Linux.Encoder.1 Another major ransomware trojan targeting

rebuilt for OS X.Windows, Cryptowall, first appeared in 2014. One

strain of Cryptowall was distributed as part of a

malvertising campaign on the Zedo ad network in

late-September 2014 that targeted several major RSA4096 is the latest iteration of

websites; the ads redirected to rogue websites that ransomware to encrypt personal computers and

used browser plugin exploits to download the connected devices. It first appeared in 2015 and like

payload. A Barracuda Networks researcher also all malware uses the 2 key system of public and

noted that the payload was signed with a digital private keys. Like all other ransomware decryption

signature in an effort to appear trustworthy to requires purchasing private keys using Bitcoins

security software. Cryptowall 3.0 used a payload bought through brokers in the dark web of which

written in JavaScript as part of an email attachment, there is no guarantee payment results in obtaining

which downloads executables disguised as JPG those keys. There are variants of this virus, of which

images. To further evade detection, the malware most are unbreakable. Depending on the variant it

creates new instances of explorer.exe and adds various extensions to your files together with

svchost.exe to communicate with its servers. When the ransom note. The only method to recover from

encrypting files, the malware also deletes volume such an attack is through restoring files from an

shadow copies, and installs spyware that steals external disc or purchasing Bitcoins. The cost of

passwords and Bitcoin wallets. Bitcoins has increased significantly over the years

which has increased the value of the ransom of The FBI reported in June 2015 that nearly about £300 thousand.1,000 victims had contacted the bureau's Internet

Crime Complaint Center to report Cryptowall

infections, and estimated losses of at least $18

millionIt states that it encrypts your data and then

The most recent version, Cryptowall 4.0, demands a ransom of .33 bitcoins or approximately enhanced its code to avoid antivirus detection, and 140 USD to get your files back. In reality, though, encrypts not only the data in files but also the file your data is not encrypted, but rather copied into a names. password protected RAR archive. Thankfully, the

password created by this infection is easily

discovered so infected users can get their files back.

When CryptoHost infects the victim's KeRanger is the first malware and computer it will move certain data files into a ransomware on the OS X operating system. It password protected RAR archive located in the encrypts the Mac user's files then demands a sum C:\Users\[username]\AppData\Roaming folder. of one Bitcoin to decrypt the files. It appeared on This file will have a 41 character name and no March 2016. There is an executable in the .DMG extension.

Cryptowall:

RSA4096:

Manamecrypt (CryptoHost)

KeRanger:

39

March- June 2016

e-track

CryptoHost is currently being bundled with attack." Eisen backs up his data regularly, so every

an uTorrent installer that when installed extracts six months, he simply restores his computer's

the cryptohost.exe file to the %AppData% folder system to default and starts afresh. "I would highly

and executes it. recommend it," he says.

Enable your popup blocker. Popups are a

prime tactic used by the bad guys, so simply avoid

even accidentally clicking on an infected popup. If a Dark web vendors have increasingly started

popup appears, click on the X in the right-hand to offer the technology as a service. Brands include

corner. The buttons within a popup might have the now defunct 'Tox' and 'Encryptor RaaS'.

been reprogrammed by the criminals, so do not In May 2012, Trend Micro threat

click on them. researchers discovered templates for variations for

Exercise caution. Don't click on links inside the United States and Canada, suggesting that its

emails, and avoid suspicious websites. If your PC authors may have been planning to target users in

does come under attack, use another computer to North America. By August 2012, a new variant of

research details about the type of attack. But be Reveton began to spread in the United States,

aware that the bad guys are devious enough to claiming to require the payment of a $200 fine to

create fake sites, perhaps touting their own fake the FBI using a MoneyPak card. In February 2013, a

antivirus software or their de-encryption program.Russian citizen was arrested in Dubai by Spanish

Disconnect from the Internet. If you receive authorities for his connection to a crime ring that a ransomware note, disconnect from the Internet had been using Reveton; ten other individuals were so your personal data isn't transmitted back to the arrested on money laundering charges.In August criminals, says Eisen. He recommends simply 2014, Avast Software reported that it had found shutting down the computer. If you have backed up new variants of Reveton that also distribute your data, you can re-install software. If you don't password stealing malware as part of its payload. feel comfortable doing so or you are unable to start

fresh, you may need to take your computer to a

reputable repair shop, says Eisen.As with other attacks, you can work to avoid

Alert authorities. Ransomware is a serious ransomware. Experts advise taking these steps to

form of extortion. "Local police are probably not avoid attacks or protect yourself after an attack:

equipped to deal with this," explains Siciliano. Use reputable antivirus software and a "However, the local FBI would want to know about

firewall. Maintaining a strong firewall and keeping it."your security software up to date are critical. It's

Don't be tempted to give in and pay the important to use antivirus software from a

ransom, warns Siciliano. "Paying them would be a reputable company because of all the fake software

mistake because they will further extort you and out there.

most likely not release your information." Taking Backup service, you diminish the threat, precautions to protect your information and

says Eisen. "If you back up your information, you maintaining vigilance are the best solutions to avoid should not be afraid to just turn off your computer becoming a victim in the first place.and start over with a new install if you come under

Ransomware as a service:

Protect yourself from ransomware:

40

March- June 2016

e-track

Make sure employees are aware of files or directories.

ransomware and of their critical roles in protecting Disable macro scripts from office files the organization's data. transmitted over e-mail.

Patch operating system, software, and Implement software restriction policies or firmware on digital devices (which may be made other controls to prevent programs from executing easier through a centralized patch management from common ransomware locations(e.g., system). temporary folders supporting popular Internet

Manage the use of privileged accounts: no browsers, compression / decompression

users should be assigned administrative access programs).

unless absolutely needed, and only use Business Continuity Efforts: All efforts should be administrator accounts when necessary. taken to avoid system failure.

Configure access controls, including file,

directory, and network share permissions Author is Madhu Bhandari

appropriately. If users only need read specific Sr. Faculty, RSC, Lucknowinformation, they don't need write-access to those

stPlantation at PNBIIT on 1 July 2016

41

March- June 2016

e-track

Feburary 2015 – Europol busts a botnet called credit card numbers,

Ramnit infecting 3.2 million computers globally. bank credentials and

other pr ivate and April 2015- Simda Botnet- network of computers sensitive information infected with self-propagating malware – has and pass it back to the compromised more than 770,000 computers m a l i c i o u s u s e r . worldwideInformation they say is

Oct 13, 2014- Botnet Targets Online Banking power, and this kind of

Transactions; ATMs Hit with New Malware- Qbot information could be absolutely damaging.

that has reportedly infected 500,000 systems, The core purpose of collecting data of

sniffing the account credentials and other data for banking credentials is to steal money from

nearly 800k online banking transactions located in the victims. Hackers infect the victims

both Europe and the U.S.computer using malware like Zeus. Zeus

All these make the headlines of the cyber botnet is a banking Trojan which caused

crime world which affect millions of computers millions of dollars loss to victims by extracting

worldwide and impact the loss of finances and money from their online bank accounts.

security of data of millions of users internationally. 3. DoS-Denial of Service: These attacks are

Botnets make up for a great deal of the hacking, made on specific targets like certain websites,

spamming and malware globally yet public there operations are taken control of and

awareness of this favorite tool of hacker's is cybercriminals extort money from these

relatively limited. Educate the users – both the end websites owners for returning the control of

user and the business users along with other their websites and normal functioning.

stringent methods. This article thus endeavors' to 4. Clickfraud: Cybercriminals use their bots to inform the users of what are botnets, their impact,

hike web advertising billings by automatically their detection and safeguards that can be used at clicking on pay per click Internet Ads using various levels.automated scripts. This is done with the

intention of boosting revenues for the site or Botnets are the acronym derived from ROBOT

draining revenues from the advertiser. networks. Botnets essentially consists of

ZeroAccess was an extremely active botnet in compromised computers, maybe hundreds,

2012-13. This botnet infected millions of thousands or more those are connected to the

computers and commited large-scale click Internet and are controlled by some remote

fraud and Bitcoin mining (Bitcoin mining use attackers called botmasters or botherders.

special software and hardware to solve math The main objectives of these botnets are: problems and in exchange for these bitcoins.

It provides a smart way to issue the currency 1. Sending: They attack computers by sending

and acts as an incentive for more people to spam, viruses, spyware.

mine.)2. Stealing: Botnets steal personal data like

The Intention of A Botnet

Botnets- Should you be scared-Nidhi Goyal

42

March- June 2016

e-track

5. Cyber espionage and warfare: State

sponsored cyber espionage and warfare is gaining

momentum. Governments like Korea, China and

Russia have been known to use sophisticated

malware designed with specific intent to steal

sensitive information and intellectual property.

Botnets provide millions of anonymous “soliders”

for these state campaigns. State sponsored botnet

are deadlier as they are able to use zero day exploits

as they require a lot more effort in term of research.

Most of the time antivirus will be unable to detect

the botnet infections still the few possible warning

signs that your network is hijacked and turned into a The peer-to-peer (P2P) is the decentralized

co-opted bot could range from computer architecture which has provided malware authors

operations slow down, display mysterious with increased resilience and location anonymity

messages, or even a crash. for command distribution points. P2P botnets have

a random topology unlike C&C servers and hence

are difficult to be accurately enumerated or

effectively remediated by the defenders.

(Fig2:ref: www.resources.infosecinstitute.com)

For your computer to be converted to a bot it

needs to be infected by a zombie making malware.

Without even your realizing your computer can get

infected by:

]Downloading a botnet Trojan by visiting

unsecure or malicious websites

A command and control server (C&C server) is ]Downloading unverified files or software

the traditional botnet that uses a centralized from regular sites

computer that issues commands to a botnet and ]Following links in email messages

receives information from the compromised ]Opening infected email attachments in which

computers. The bots are infected with malware like Trojan botnet code is hidden as excel, word or

Trojan horses and then communicate with the jpg files.

centralized server using IRC. The topologies of ]Connecting to an infected network.botnet maybe star, multiserver for redundancy or

tiered groups housing multiple servers. (fig1:ref:

www.resources. infosecinstitute.com)

The Architecture of botnets:

How is my computer converted to a bot?

43

March- June 2016

e-track

tackle the problem yourself. Follow the following

steps :

]Install antivirus and antimalware software

updates

]Run a specialized botnet removal tool such as

RUBotted or AntiBot

]Delete any malware these applications detect

]Repeat the scans until your system until

botnet infection is cleared.

Prevention they say is a step ahead of cure. To

prevent a botnet infection take the following

precautions:Hackers can disguise bot malware by simply

]Keep an up to date operating system with all changing the file extension to hide executable (EXE) patches installed, and enable automatic files. You may think you're opening a picture of a updatescute kid, but in fact, is an exe file. The malicious code

]Regularly update your security software ,it may be a script or a macro within a document file

should run constantly in the backgroundwhich when opened will secretly run the botnet

]Disable autorun as this feature automatically installation file without informing you. This leads

installs software, disabling it will prevent the bot to hide itself deep inside your system and

operating systems from blindly launching begin communicating with the botmaster's CnC

commands from foreign sources.server. (Fig 3:ref: www.twimgs.com)

]Ensure all your software applications are up As IRC communication is the major method

to dateused to command botnets, defenders guard against

]Install a strong firewall and configure it to it well. This move has motivated the drive for more alert you whenever a program or process covert ways for C&C servers to issue commands. attempts to access the internetAlternative methods used for bot net command

]Do not visit suspicious or unverified websites include JPG images, Microsoft Word files and posts

and don't click on unknown linksfrom social networking dummy accounts.

]Don't download unverified software or filesHow to cure and prevent bot net infections as

end user and professional ]Open mails and attachments from your

known senders If your computer regularly exhibits

unpredictable behavior then you should run a ]Use networks which use intrusion-detection

malicious-software detection tool like Windows and intrusion-prevention systems

Malicious Software Removal Tool (free of cost) to ]Create strong passwords that are difficult to

scan your system for malware. If you find botnet guess and change all your previous login

infection on your computer you might want to take credentials

the help of a computer security expert or try to

44

March- June 2016

e-track

]Subscribe to a web-filtering service to (VLANs), or access control lists (ACLs)

monitor your internet activity in real time between subnetworks to limit exposure. This

strategy is not a good fit, however, in ]Disconnect your computer from the internet

environments that mix voice and data when not in use or at inactivity hours

communications, as it tends to break the ]Use more secure web browsers like chrome.

ability to negotiate virtual circuits on the fly.Browsers like Internet Explorer or Firefox are

5. Provide Least Privilege. When users are not more prone to infections as the majority of

administrators of their own workstations, it is malware is written for these applications

much harder for malware to propagate via For Professionals security experts some of the drive-by download or for AutoRun methods to precautions are:take hold on a system. Preventing users from

1. Install a Windows Firewall. Though being administrators also makes it more

sometimes tempting for end users to disable, difficult for their user account credentials to

a properly configured Windows firewall can spread malware, should the computer

block many network-based exploits. This become infected.

measure is especially appropriate for large 6. Install Host-Based Intrusion Prevention To agencies with many similarly configured

keep botnets from taking root in a system, IT machines.managers should concentrate additional

2. Disable AutoRun. The autorun feature, which protections on specific network layers based

automatically installs software, should be on vulnerability, such as at points of contact

disabled to prevent operating systems from between specific hardware and software. This

blindly launching commands from foreign approach does not fix technical flaws or holes

sources.in operating systems or application software,

3. Break Password Trusts. Judicious control over but it can reduce the chances that exploits will

local accounts, especial ly the local be successful. These tools are highly effective,

administrator account, is critical to isolating but they are expensive and challenging to

and eliminating threats. Disabling computers' deploy.

capability to automatically connect to each 7. Enhance Monitoring The more that is known

other closes the path that botnets take to about how end users and the network operate

spread to the internal network. This is in normal activity, the easier it will be to

particularly critical in environments where determine in real-time when a botnet

machines store highly confidential data.infestation causes slight anomalies. Around-

4. Consider Network Compartmentalization. In the clock monitoring is ideal, using products

most computing environments, workstations that collect data on network traffic, train

do not need to communicate with each other devices to monitor abnormalities, and detect

across departments. Shutting down this and prevent intrusions. However, even with

capability goes a long way toward preventing remote managed security services filling the

the spread of botnets. IT managers should gap, enhanced monitoring might be beyond

establish private virtual local area networks the capabilities of many government

45

March- June 2016

e-track

agencies.

8. Filter Data Leaving the Network. Botnets The major botnets in the decade that have hit

typically establish communication with one or banking sector are:

more remote servers that hackers use to

retrieve private information. To stop these The opening of mobile to mobile platform communications, and the threats associated provided a new venue for botnets from 2011 with them, agencies can prohibit unwanted onwards. Damballa Research Laboratory had traffic from leaving the network, a tool known discovered nearly 40,000 infected mobile devices as egress filtering. Agencies should force receiving commands from C&C servers in the first Internet traffic through proxies or content half year of 2011. Mobile botnets exploit the same filters (see below), or deploy a data loss communication channels (e.g. IRC, HTTP, P2P), used prevention (DLP) solution. for a desktop. In 2012 large scale mobile botnet

9. Use a Proxy Server. While it is impractical to became a reality. Millions of mobile devices in china

block all potentially hostile outbound traffic, got been infected by botnets via 7,000 Trojan

forcing outbound traffic through a proxy applications and new variant of Zeus malware on

server gives agencies a secondary choke point mobile platform. The Zeus mobile version: Zitmo is

for monitoring and controlling Web access a multiplatform agent that infects a variety of

and for defeating some attempts to tunnel Mobile operating systems, such as Windows

around security measures. Content filtering is Mobile, BlackBerry, and Android, mainly by social

appropriate for almost any agency. engineering approaches like sending an infected

10. Install Reputation-Based Filtering. Tools like SMS to victims containing a fake URL which is

Iron Port and Web Sense can help block e-mail actually a bot posing as a security certificate

from, and requests to, addresses that have download. Messages sent by banks to their

reputations as potential malware sources. customers are intercepted and authenticated, and

then illegal transactions are made by stealing 11. Monitor DNS Queries The way that a

mobile transaction authentication numbers (TAC). workstation responds to domain name

DroidDream: a silent malware active between system (DNS) queries is often an early warning

(11pm to 8pm) gained root privileges on infected sign that the workstation may be infected.

mobiles and installed an application that protected Specifically, responses from workstations that

itself from removal and stole sensitive information. contain very low time-to-live (TTL) values

Android.Bmaster and MDK and IKee.B are other should be monitored, as low TTL can indicate

examples. Ikee.B works on jailbreak iphones.infection. Monitoring allows system

administrators to act before the infection Apart from mobile botnets attackers targeted

spreads too far commercial banks, credit unions, and other

financial institutions in developed and wealthy The steps outlined here provide a framework

countries in 2013 more than countries where for a cyber security strategy tailored to an agency's

international transactions required more tedious specific size, as well as the size of its IT department

processes and local intervention to launder the and budget.

money. Though, targets of attackers in 2013

Recent worst botnets

Mobile Botnets

46

March- June 2016

e-track

focused more on traditional banking websites, they botnet called Ramnit infecting nearly 3.2 million

also included related institutions such as computers globally in collaboration with multiple

Automated Clearing House (ACH) that that process law enforcement and industry partners to seize

high-volume, high-value transactions and Single servers and other important infrastructure of this

Euro Payments Area (SEPA) credit transfers. Some botnet. India along with other Asian countries was

campaigns attacked corporate bank accounts and the hardest hit . Similarly Interpol announced the

payroll systems. successful takedown of "Simda" botnet in April

2015.

Zeus, IceIX, Gameover Zeus, Bugat, Gozi,

Shylock, Torpig. These botnets share common the Banking Trojans have been haunting financial features and capabilities of banking botnets like institutions from the mid of 2000 especially the Man in the Browser (MITB) attacks- a central Trojans targeting online banking transactions. capability of banking trojan ,video capture, proxy, Banks and financial institutes make continuous screenshots-these allow capture of important efforts to improve their security standards for information and assimilation of pattern of victim online customers but the cybercriminals are also behaviour , certificate stealer, edirect and back continuously devising methods to pose new connect allow attackers to control these fradulant challenges and more sophisticated malware and transactions. The success rate of the financial botnets. This cat and mouse game has become a transaction depends on the combination of these reality in this decade. features and level of security safeguards of the

attacked institution.

The most active banking botnets- Game over * http://mac-internet-security-software-

Zeus, Shylock, Ramnit, Simda were started in review.toptenreviews.com/how-do-i-know-

i f -my-computer - i s -a -botnet -zombie-various months 0f 2011 and attacked millions of

.html#sthash.ttBiR124.dpufcomputers worldwide causing in financial

* http://www.secureworks.com/cyber-threat-institutions. They were taken down by the intelligence/threats/top-banking-botnets-of-combined efforts of financial institutions and law 2013/enforcement agencies in separate operations

* http://www.secureworks.com/cyber-threat-June2014, July2014, Feb.2015 and April 2015 intell igence/threats/banking-botnets-

respectively, creating headlines across the world. persist-despite-takedowns/

Gameover Zeus peer-to-peer (P2P) network, * http://www.welivesecurity.com/2015/

was disrupted in Operation Tovar by exploiting 02/25/nine-bad-botnets-damage/design flaws in it and circumcising its infrastructure * http://articles.economictimes.indiatimes by manipulating the peer list and redirecting traffic .com /2015-02-25/news/59499987_1_ to nodes under the defender's control. Shylock symantec-botnet-infected-computers

botnet based on C&C infrasturucture command and

control (C2) servers were seized soon after this in a Author is Ms Nidhi Goyal,

global operation. In Feb. 2015, Europol busted a Asst. Professor, Amity University, Lucknow

The most active botnets of 2013 were:

Conclusion

References:

47

March- June 2016

e-track

HDFC bank launches Watchbanking RBI to reward best innovator in payments system space

PNB launches Digital Banking Solutions

Tata Banks On Technology To Make Ecommerce Site

Cliq With Customers

Source http://www.businessinsider.in/ Hereshow-

top-5-Indian-banks-use-technology /articleshow/

48003107.cms

Source : The Hindu Business Line (02Jan ,2016)

Source: http://articles.economictimes.indiatimes

.com/keyword/banking-technology

The banking regulator, the Reserve Bank of India

(RBI), for the first time will acknowledge the best ideas in

payments technology. The RBI has said that it will reward

three best innovators in the payments system for five

categories which includes mobile payments; and

customer convenience and cost reduction among HDFC bank has leveraged the popularity of

others. The RBI said that the move is aimed to encourage wearable devices in the country and has launched

innovators in area of payments and settlement system. 'watchbanking' with its Apple watch. The bank will

The other three categories include payments payments provide all its banking services through all wearable

security including fraud prevention, acceptance and devices across platforms like iOS and Android. This will

electronic payment infrastructure and use of emerging provide a total of 10 banking transactions in the current

technologies for payments.launch phase. Some of them being View Account

Information, Bill Payments, Recharges, Hotlisting

facilities, locate nearest branch, ATM, offer, request

statement and chequebook among other.

Tata Unistore, the Tata group's online sales arm, paid TCS Rs 36.48 crore in the runup to the launch of the

website. There's another Rs 20.9 crore of work done in FY16 that is yet to be paid out, TCS' annual report

showed. The TataCliQ ecommerce site that launched last Punjab National Bank (PNB) has launched slew of

week had TCS as its primary technology partner . Data digital banking solutions aimed at improving customer

analytics for the site will be provided by Tata IQ.

Source: http://articles.economictimes.indiatimes.

com/keyword/banking-technology

News on banking and Information Technology Compiled by Sweety Dubey, PA to Director

48

March- June 2016

e-track

experience. The digital solutions launched at the hands * At Vijaya Bank, it is communicated that paper is

of Usha Ananthasubramanian, Managing Director and replacing desktops

CEO, PNB, include an industry first App enabling the * Similarly, Standard Chartered Bank introduced a

customer to locate PNB ATM with 'PNB ATM Assist'. This formal environmental and social (E&S) risk policy

android app facilitates the customer to use GPS and to govern lending activities in 1997. It has also

reach the nearest PNB ATM. been a signatory to the Equator Principles (EP)

since 2003. Priorities since 2011 include, building

on bank's work to measure social and economic

impact of lending, reduce annual paper

consumption per full-time employee from 30 kg

to 25 kg and continue to reduce energy and water Recently, as a part of the 'Green Initiative', the

consumption.Centre has suggested the NBFCs take proactive steps to

promote day to day use of electronic payment systems,

elimination of post-dated cheques and gradual phase-

out of cheques in their business transactions. Similarly,

the ministry of finance has directed all public sector India may soon have a green bank which shall

banks, financial institutions and public sector insurance enable easy access to cheap international funding for its

companies to take up e-governance. Whereas, when a ambitious renewable energy targets. According to

survey was conducted recently in Bangalore as part of a recent media reports, the Indian government is planning

major research project work on green banking which to convert the Indian Renewable Energy Development

also included public sector banks on the awareness of Agency (IREDA) into a full-fledged green bank. Agency's

green banking and the initiatives undertaken on this Chairman and Managing Director, Mr KS Popli, recently

regard, it was evident that it was still in its infancy. The told media outlets that the agency would 'retain its basic

findings of the study are as below: structure' during and after this conversion. Conversion

* State Bank of India has a green channel counter of IREDA into a green bank will enable it to secure cheap

and the bank encourages paperless banking. international funding and will also open up a new debt

There is no use of pay in slips, withdrawal forms, financing avenue for project developers in India. With

cheque leaves, remittance forms and the solar power tariffs falling rapidly conventional banks are

transactions are done through SBI ATM cum debit increasingly becoming hesitant in lending to project

card. They have also won the 'best customer developers; the recent bankruptcy protection filing by

initiative' award for the green channel counter at SunEdison, a major player in India, has only worsened

the IBA Banking Technology Awards. the market conditions.

* In Canara Bank, officials see green banking only as IREDA currently regulates and delivers

a form of paperless banking. The bank has been incentives to renewable energy projects. The proposed

the initiator of paperless banking and is the conversion, being 'fully backed' by the Ministry of Power,

highest financer for solar energy related projects. shall allow it to disburse debt finance to projects. The

The bank is also known to be conducting carbon Agency has already taken steps towards raising funds

financing in Delhi and Mumbai. through green bonds.

* According to an officer from Syndicate bank, 'The

processing of 'Green Initiatives' includes the

application of electronic means.' National

Electronic Funds Transfer helped Syndicate bank

in cutting off stationary expenses.

Major Banks should lead the way towards Green

Banking

India to Convert Regulatory Body into Green Bank

Source : Deccan Herald (09 June 2016)

Source :Economic Times (04 May 2016)

49

March- June 2016

e-track

The year 2007 was a memorable year for Punjab ADBT course helps you to grow in

National bank Institute of Information Technology as in this banking sector either it is front end or back

year there was commencement of the course Advanced end processes . It helps to know what are the

Diploma in Banking Technology (ADBT) in the month of mandatory regulatory policies required for

May. running a bank smoothly……. Pushkar Verma

( ADBT Batch VIII)The ADBT course is aimed at creating a pool of

responsible techno bankers for Banking and IT sector.It is ADBT is a very good course for those people who

designed to impart in depth knowledge and expertise to wants to start their professional career from a very scratch

the students through innovative learning supported by pad. It provides good knowledge in technical side as well as

relevant high end technology. The pivotal objective of the management. Although it is a very good course but also

course is to bridge the gap between industry and academia need so many updates in course according to time and

by producing next generation quality Techno- bankers and industry demand……..Gaurav Varshney ( ADBT Batch VIII)

IT professionals for banking and IT sectors. "ADBT is one of the very good

The course curriculum includes Banking concepts, Diploma course which provides banking and

Core banking solution, advanced practical concepts of data IT knowledge and CBS as well. This has also

base, operating system, networking, JAVA, LINUX, Oracle given various paths for the career growth in

etc. The campus selection is conducted and in the last 9 banking sector and IT industry... Sumita

batches Institute could achieve 100% placement. The X Chaubey( ADBT batch VII)

batch is about to start in July 2016. "ADBT is a very good course which gives us knowledge in IT,

Our prime recruiters are National Payment banking and an application which is CBS(Core Banking

Corporation of India, HP, Nurture, ICICI, Kotak Mahindra Solution). It also gives exposure of data centre of pnb.

etc. Apart from helping in improving skills in

these fields it also gives a chance to discover

about yourself through personality "The knowledge which I got from you all, not only in development classes. I would highly banking but also in UNIX & Oracle is proving handy for me. I recommend this course to every student have been selected as UNIX Admin L2 by multinational IT looking for a good platform to start in Company in Malaysia. Thanks for nurturing me in banking career"….. Juhi ( ADBT batch VII)and ITskills ………. Rohan Mehrotra ( ADBT batch 1)

"Adbt is a good course as the knowledge provided is very "ADBT course forms a solid foundation related to useful and it opens lots of career opportunities for us but if banking and IT concepts, its architecture and contents are course also includes finacle scripting then it will be the best excellent …………. Pooja Pant, student ( ADBT batch 1)course in the field of banking technology….. Manisha "The course contents are very well "(ADBT batch VII)designed and I have learnt preliminary

ADBT is a very good course which gives us procedures of banking. The fundamentals of knowledge in IT and banking related sector. Apart from integration of IT and banking have been helping in improving skills in these fields it explained very well. Here I have had the also gives a chance to discover about opportunity of practically working on LINUX. yourself through personality development …… Nidhi Goel ( ADBT batch 1)classes. It provides good knowledge in The course of ADBT is designed in technical side as well as management. I professional yet exhaustive manner having would sincerely recommend this course to the right combination of banking and all students looking for a good platform to technologyas the name suggests.The course start in career…... Shubham Saxena(ADBT-viii) curriculum introduces us to each and every

sphere of banking and IT in detail. I am

taught many things from scratch and my

doubts are cleared at each and every level. ……. Jayshree

Nimesh ( ADBT Batch 1)

This is what the alumni speak:

Advanced Diploma in banking technology-from our alumni

ADBT Batch X is going to start shortly

For details of ADBT course and PNBIIT visit pnbiit.ac.in

50

March- June 2016

e-track

Paperback, 256 pages

Published November 10th 2015

By Rupa Publications India

ISBN13 9788129137708

In My Gita, acclaimed mythologist Devdutt

Pattanaik demystifies The Bhagavad Gita for the

contemporary reader. His unique approach-thematic

rather than verse-by-verse-makes the ancient treatise

eminently accessible, combined as it is with his trademark

illustrations and simple diagrams.

Hundreds of translations and commentaries have

been written on the Bhagavad Gita, as it is one of the most

popular texts of Hinduism. The author reminds us over

and over how it is "his truth", which may or may not be the

same as other people's truths. However, the author

presents the Gita thematically, not adhering to the original

order of chapters. "The verses are paraphrased, not

translated or transliterated. These paraphrased verses

make better sense when juxtaposed with Vedic,

Upanishadic and Buddhist lore that preceded". The main

part of the book is divided into 18 chapters, much like the

original text, but the division is thematic rather than

sequential. Themes that are scattered and recurrent in the Bhagavad Gita become coherent units that flow

logically in author's chosen structure. Of course, this will be helpful to those who haven't read the original.

There's a helpful table in the book that compares and contrasts the two books in terms of content. The

author has organized the book into eighteen themes , namely Observation (Darshan), Rebirth (Atma),

Mortal Body (Deha), Body's Immortal Resident (Dehi), Cause and Consequence (Karma), Appropriate

Conduct (Dharma), Exchange (Yagna), Introspection (Yoga), Trust (Deva-Asura), Potential (Bhagavan),

Expanding the Mind (Brahmana), Contracting the mind (Avatar), Tendencies of Matter (Guna),

Propreitorship (Kshetra), Measurement (Maya), Attachment (Moha), Liberation (Moksha) and Union

(Brahma-Nirvana). The book concludes with a chapter that speaks of two other Gitas and summarily ties it

all up.

The author doesn't dwell too much on a single topic, and connects all his eighteen chapters

seamlessly using simple language and also cites various examples from the Mahabharata and Ramayana to

further validate the teachings in the Gita. The best part about My Gita is that the reader's kept out of the

religious charade. You don't necessarily have to be from a particular religion to enjoy the contents of this

book. Its approach embraces a wider domain, one which accepts all.

My Gitaby Devdutt Pattanaik

51

March- June 2016

e-track