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RBI proposes Islamic window for Sharia Banking interest free bank
Reserve Bank of India proposes opening of Islamic window in conventional Banks for Sharia Banking and interest free banking system
Central Government and Reserve Bank were planning to start Islamic Banking to ensure banking to those section of the society which remain excluded due to religious reasons.
Sharia Banking enables to not charge interest by banks
Islamic or Sharia Banking is a financial system based on principles of not charging interest which is prohibited in Islam.
The Reserve Bank of India’s decision is based on examination of legal, technical and regulatory issues regarding feasibility of introducing Islamic banking in India on the basis of recommendation of Inter Departmental Group (IDG).
RBI has also prepared a technical analysis report regarding introduction of Islamic Window and sent to Finance Ministry.
