New Delhi: The Reserve Bank of India (RBI) has asked the banks to pay special attention towards integration of social and environmental concerns in their business operations. Stressing the need for Corporate Social Responsibility (CSR), RBI pointed out that these initiatives by the banks are vital for sustainable development.
Issues such as global warming and climate change pose a great risk to the environment and can be quite damaging to the business models of companies. Asian companies are at present underestimating the impact of these calamities and a sense of urgency towards playing a meaningful role in tackling them.
Only a scenario in which the quality of environment and social systems synergize with business models, can lead to sustainable development. Many of the newly formed private and foreign banks are aware of the importance of such a step and therefore are having an active corporate social responsibility department.
RBI has asked the banks to start non-financial reporting, which will be used to audit their initiatives towards the corporate social responsibility (CSR). Such a reporting will cover the work done by the banks towards the social, economic and environmental betterment of society.
RBI has also stepped in to spread awareness about banking and other monetary practices to the common man. Recognizing its role as the central bank of the country, RBI is working towards empowering every individual, especially kids with information about mainstream banking activities and how they can preserve their wealth.
RBI has launched two comics viz. Raju and the Money Tree and Money Kumar and the Monetary Policy towards spreading financial awareness among the kids in an interactive, fun and easy to digest way. RBI has also made few films depicting the security features of various currency notes so that people can identify fake notes. These films are available on the RBI's website. Interactive games, which help kids learn about currency notes and money are also available on RBI's website.
The recent effort towards financial inclusion where more and more people are being brought into mainstream banking and are made aware of various financial products to empower their life is also a big step in gearing up for rapid economic growth.