IslamicFinance.de

After examining the details of Islamic banking, Reserve Bank of India (RBI) has decided not to pursue the matter any further. It all started in late 2008 when former RBI governor Raghuram Rajan had stressed on the need for a closer look at the issue of interest-free banking in the country. Later, an inter-departmental group (IDG) set up in the RBI examined the legal, technical and regulatory issues for introducing Islamic banking in India. It recommended an "Islamic window" in conventional banks for gradual introduction of Sharia-compliant banking. However, no deadline was given for the proposal. This Sunday the central bank has refused to go on with the idea saying the decision was taken after considering the opportunities available to all citizens to access banking and financial services.