Citizen's Financial - which is a US-based subsidiary of the Royal Bank of Scotland Group - says its new Green$ense initiative is "an industry-first incentive programme" that will reward new and existing Citizens Bank and Charter One retail customers for electronic transactions.

Under the Green$ense programme retail customers will receive 10 cents for every electronic payment they make, up to $10 a month. The bank says cash will be paid for debit card transactions, online bill payments and recurring payments. The money will be deposited directly into accounts on a monthly basis.

Customers who sign up for the programme will be enrolled automatically for online banking and e-statements and will receive a Green$ense MasterCard debit card made from recycled plastic.

The bank cites figures from the US Postal Service claiming the average family receives approximately 19 bills and statements and makes seven payments in paper per month. By going electronic, a family can save about seven pounds of paper, 63 gallons of water and 24 square feet of forest a year, says Citizens.

Customers will be able to calculate the effect their move to Green$ense has on the environment with an online calculator on the banks' Web sites. Participants will also be sent a monthly e-mail containing tips on green living.

Theresa McLaughlin, group EVP and chief marketing officer, Citizens Financial Group, says: "With Green$ense, we pay customers for changing their habits in a manner that not only makes banking more convenient and their lives more manageable, but also is beneficial for the environment."

Last month Bank of America launched Eco-Deduct, an environmental rewards scheme that sees it make donations to a conservation charity for new and increased use of its US$ commercial wire transfer service.