Islamic banking will not be pursued by RBI

Islamic banking will not be introduced in India. The RBI decided not to pursue a proposal for Islamic banking in the country.

The decision was taken after considering the wider and equal opportunities available to all citizens to access banking and financial services. This was revealed by the Reserve Bank of India in an RTI reply.

Islamic or Sharia banking is a finance system based on the principles of not charging interest, which is prohibited under Islam.

The issue of



introduction of Islamic banking in India was examined by the RBI and the government of India, it said.

'Taking into account, the wider and equal opportunities available to all citizens to access banking and financial services, it has been decided not to pursue the proposal further,' the central bank said in its reply to the RTI application filed by a PTI correspondent.

The RBI was asked to provide details of steps being taken for the introduction of Islamic or 'interest-free' banking in India .