This study examines the transformative shift of India’s banking sector from old profit- driven approaches towards a more sustainable and ethical framework known as Green Banking. In this study we use, an analytical and descriptive research design from the secondary data of various banks i.e. Reserve Bank of India (RBI), SEBI and the Indian Bank of Association (IBA) to examine the incorporation of various environmental factors into financial processes. The purpose of the research is to understand how regulatory authorities guide this transformation and to identify the barriers in adoption and implementation. The analysis of this study shows that financial products lead to adoption through six primary methods, followed by internal operations and Digital Delivery. Banks key initiatives include green mortgages, solar equipment and paperless digital channels whose collectively aims to decrease the carbon impact and to encourage eco-friendly consumer behaviour. This study finally concludes that while Indian banks are successful moving towards product innovation and operational reforms, but still major challenges remain. Challenges such as awareness barrier, technological and operational barrier etc. which create hurdles in implementation of sustainable banking. In order to achieve the target of national carbon neutrality, this study emphasises the need for more integrated regulatory framework that bridge the gap between traditional finance and environment sustainability.