The reserve Bank of India has proposed the opening of “Islamic window” in conventional banks for ‘gradual” introduction of Sharia-compliant or interest-free banking in the country.
Both the Centre and the RBI have been exploring the possibility of the introduction of Islamic banking for a while now to ensure financial inclusion of those sections of s society that remain excluded due to religious reasons.
“in our considered opinion given the complexities of Islamic finance and various regulatory and supervisory challenges involved in the matter and also due to the fact that Indian banks have no experience in this field, Islamic banking may be introduced in India in a gradual manner,” the RBI has told Finance Ministry in a letter, a copy of which was received in response to an RTI query filed by PTI.
Source : The Hindu Date: November 21, 2016
