In each and every aspect of business “Go Green” mantra has become relevant in the environment friendly society. Green Banking ensures environment friendly practices in banking sector and reducing internal carbon foot prints and external carbon emission. This paper makes an attempt to understand and examine “Green Banking” and its role toward sustainable development. It elicits the various initiatives taken by the Indian Bank industry to protect the natural environment and brings about sustainable development in the society. It aims to highlight the means to create awareness in internal as well as external subsystem among target groups and enumerate effective methods for green banking and impart education to attain sustainable development through green banking.