IslamicFinance.de

The Reserve Bank of India (RBI) has taken a positive approach to the suggestion of an alternative banking system for Muslims after K. Rahman Khan, Minister for Minority Affairs, emphasized that it was the duty of the State to facilitate every citizen to practice and follow his/her religion. The RBI Governor pointed to the need for certain amendments to the laws concerned. The Minister said, in India the biggest issue was who should regulate the proposed alternative system, as it needed a strong monitoring mechanism. He added that concrete efforts should be made, such as setting up an expert committee to draw up a framework of an alternative banking system, along with a strong legal system to back it.