Not to pursue Islamic banking in India, says RBI

In a major move, the Reserve Bank of India (RBI) has decided not to pursue a proposal for introduction of Islamic banking in the country.

Replying to an RTI query, the central bank said the decision was taken after considering “the wider and equal opportunities” available to all citizens to access banking and financial services.

Islamic or Sharia banking is a finance system based on the principles of not charging interest, which is prohibited under Islam.

The issue of introduction of Islamic banking in India was examined by the RBI and the government of India, it said.

“Taking into account, the wider and equal opportunities available to all citizens to access banking and financial services, it has been decided not to pursue the proposal further,” the central bank said in its reply.

The RBI was asked to provide details of steps being taken for the introduction of Islamic or ‘interest-free’ banking in India.

(Agencies)

Leave a Reply

Your email address will not be published. Required fields are marked *

Make Correct Pattern to CommentWordPress CAPTCHA