Green banking has become a buzzword in the banking arena in Bangladesh and all over the world in recent times. Green banking is defined as an 'eco-friendly socially responsible banking' which not only plays the role of financing intermediary but also works on achieving objectives towards a healthy environment for the present generation and future generation as well. We live in a competitive world where everything is relative. Everybody wants to be better than others and one’s activities sometimes cause environmental change and damage. So to save environment Green banking is a part of a green initiative taken by banks. Environmentally friendly policies can be applied so that green bank can grow in every sector of its activities without changing its main banking functions. It can also augment the goodwill of the institute and promote a 'green and social consciousness image' in the society. Although this theme has been implemented in several developed countries promoting the slogan 'Be green, Go green', it is a very useful starting point for developing countries like Bangladesh to follow. This paper observes the existing practices of green banking in Bangladesh and has made an endeavor to highlight systems, opportunities, difficulties, and advantages of green banking policies. In this study, secondary data from Bangladesh Bank Reports and other commercial bank reports have been used. These Results show that the 'Bangladesh Bank', formulated policies, strategies and allocated budgets to commercial banks with respect to green initiatives. Special packages for green projects can eliminate the present problems and can help to face the challenges and consequently accelerate green banking activities.