RBI not for Islamic banking

Reported by: |Updated: November 15, 2017

Reserve Bank of India will not pursue the proposal for introduction of Islamic banking in India. The central bank, in reply to an RTI query, said its decision follows consideration of the wider and equal opportunities available to all citizens to access banking and financial services in the country. The RTI query by news agency PTI asked the central bank about the steps it is taking for the introduction of Islamic banking in the country. The government had set up an inter-departmental group in the RBI to examine the legal, technical and regulatory issues for introducing interest free banking in India and it has submitted its report to the government. The RBI had had recommended an ‘Islamic window’ in conventional banks for gradual introduction of Sharia-compliant banking.