Sustainable Banking Models Inspired by Ancient Indian Economic Thought:

Recent years in the global financial sector have emphasized a shift toward sustainable practices, which have prompted a rethinking of traditional banking. Sustainable banking has become an approach that combines principles of environmental accountability and ethical governance with an emphasis on inclusive economic development through Environmental, Social, and/or Governance (ESG) principles. However, although sustainable practices have begun to emerge within the banking sector, many of today's banking systems treat sustainability as a mere addition to the financial process rather than a part of normal operations. In this research study, the author examines how the sustainable banking model is built using ancient Indian economic philosophies, such as the ethical or social concerns regarding sustainable practices, the use of prudent financial management to help ensure the long-term stability of the financial system, and the use of regulatory mechanisms. This research uses the principles outlined in the Arthashastra to analyse several dimensions, including ethical decision making or Dharma, prudent financial management, regulatory controls, and welfare-oriented policies. In addition to identifying many similarities between ancient and modern financial systems (e.g., use of credit instruments, decentralized financial institutions, and reserves), the author has identified several important limitations of contemporary sustainable banking practices (e.g., inconsistent implementation of sustainable banking policy, lack of stakeholder involvement in the development of sustainable banking practices, and weak ethical integration into sustainable banking practices). In order to fill these gaps, our research has developed a conceptual model of hybrid banking that combines ancient Indian economic concepts with contemporary ESG frameworks and technology. The findings indicate that integrating indigenous knowledge systems with modern banking may provide improved ethical alignment, resilience, and sustainability. The results also demonstrate that the hybrid banking model provides an additional and practical framework for policy makers and financial institutions to achieve sustainable finance and long-term, inclusive economic development.