This review paper explores the impact of green banking practices on banks' environmental performance based on research papers. Green banking, which integrates environmental sustainability into banking operations, is becoming increasingly important as financial institutions balance their profitability with environmental stewardship. This review identifies key benefits and challenges and suggests future research directions to further understand the impact of green banking on financial performance. This study relies on an in-depth review of secondary data obtained from diverse sources, including quarterly reports, annual reports, websites of the central bank of India, commercial banks, non-bank financial institutions, and articles and newspaper reports on green banking in India. The findings indicate that the central bank of India significantly contributed to the development of an environmentally sustainable financial system in India by implementing a range of green policies and regulatory measures. India has made significant advancements in implementing and expanding green banking practices, developing infrastructure, and promoting green growth in recent years. However, it still lags behind developed nations in terms of environmental performance.
