IslamicFinance.de

The Reserve Bank of India (RBI) has said it will work with the government to introduce interest-free banking, as part of its efforts to improve financial inclusion. The RBI’s proposal paves the way for introduction of Islamic finance in India. In March 2015, State Bank of India (SBI) deferred the launch of a Shariah-compliant equity mutual fund at the last moment. SBI maintained that the decision was a commercial call, but there was speculation that the decision had to do with political pressure. Senior BJP leader Subramanian Swamy is among the most vocal critics of Islamic finance, arguing that it could encourage religious conversion and also open channels for terrorist organisations to channel money into India.