Go green, back sustainable growth, RBI tells banks

Mumbai: The Reserve Bank of India (RBI) has asked banks to take effective steps to further the cause of sustainable development, taking into consideration the effects on climate change and global warming.

The central bank also asked banks to place on record information on their efforts toward corporate social responsibility (CSR) and sustainable development along with their annual accounts.

Banks should act also act as 'responsible corporate citizens' and their activities should reflect their concern for human rights and environment, the RBI said.

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

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

RBI also called for a concerted effort among all type of organisations to ensure sustainable development is lost out in the pursuit of profit.

Sustainable efforts by financial institutions assume urgency and banks can play a meaningful role for the cause of clean environment, RBI noted.

The United Nations has defined sustainable development as the utilisation of natural resources without compromising needs and aspirations of future generations.