20
Saturday
October 2018
8:06 PM IST
News Headlines
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | Health   | About Deepika 
National News
RBI Says No To Islamic Banking In India
 
(New Delhi, Nov 12, 2017):In a major move, the Reserve Bank of India (RBI) has decided not to pursue a proposal for introduction of Islamic banking in the country. Replying to an RTI query, the central bank said the decision was taken after considering "the wider and equal opportunities" available to all citizens to access banking and financial services. 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. Prime Minister Narendra Modi had on August 28, 2014 launched Jan Dhan Yojana, a national mission to bring about comprehensive financial inclusion of all the households in the country. In late 2008, a committee on Financial Sector Reforms, headed by former RBI governor Raghuram Rajan, had stressed on the need for a closer look at the issue of interest-free banking in the country.

"Certain faiths prohibit the use of financial instruments that pay interest. The non-availability of interest-free banking products results in some Indians, including those in the economically disadvantaged strata of society, not being able to access banking products and services due to reasons of faith," the committee had said.

Later, on the instruction of the central government, an inter-departmental group (IDG) set up in the RBI examined the legal, technical and regulatory issues for introducing interest free banking in India and has submitted its report to the government. The RBI had in February last year sent a copy of the IDG report to the finance ministry and recommended an "Islamic window" in conventional banks for gradual introduction of Sharia-compliant banking. "In our considered opinion, given the complexities of Islamic finance and various regulatory and supervisory challenges involved in the matter and also due to the fact that Indian banks have no experience in this field, Islamic banking may be introduced in India in a gradual manner.

"Initially, a few simple products which are similar to conventional banking products may be considered for introduction through Islamic window of the conventional banks after necessary notification by the government," it had said in a letter to the ministry.

The letter further reads: "It is also our understanding that interest free banking for financial inclusion will require a proper process of the product being certified as Sharia complaint will be required both on the asset and liability side and the funds received under the interest free banking could not be mingled with other funds and therefore, this banking will have to be conducted under a separate window."


Amritsar tragedy: Women, children among 61 killed as rushing trains crush Dussehra revellers
Rahul Gandhi calls on Sri Lankan PM
PNB Scam: ED seizes more assets of Modi, Choksi
Andhra CM visits cyclone-hit areas in Srikakulam
#MeToo fallout: MJ Akbar resigns as minister of state for external affairs
Polling underway for last phase of municipal polls in J-K
Minister MJ Akbar Sues Journalist For Defamation Over #MeToo Allegations
Goa Congress Calls Cabinet Meeting in AIIMS 'Desperate Drama', Demands Parrikar's Resignation
‘Flogging a dead horse’: BJP’s comeback on Rahul’s attack on Rafale
AG Venugopal favours Indu ruling on Sabarimala
I believe in all of them: Maneka Gandhi on #MeToo
Kejriwal asks PM to apologise after IT Dept raids premises of Gahlot
SC asks Centre to provide details of Rafale decision making in sealed cover
Swaraj dodges questions on sexual harassment allegations against MJ Akbar
India on alert as zika virus hits tourism hotspot of Jaipur
20,000 migrants flee Gujarat
Maharashtra and UP ATS nab BrahMos Aerospace engineer for leaking info to Pakistan
Train hits dead end at Mumbai's LTT station; none hurt
Plea in SC seeks review of Sabarimala judgement
No question of alliance with BJP, we are secular people: Shivpal
ENTERTAINMENT NEWS
Mohanlal's Odiyan: Official trailer launched
 Finally the wait is over. The much awaited Mohanlal film Odiyan's trailer has been released.
 
Mammootty narrates Odiyan's intro?
Sradha Kapoor as Saina Nehwal: First look poster is out.
Keerthy Suresh and Kalyani Priyadarshan joins Marakkar
INTERNATIONAL NEWS
Top Afghan Police Chief Killed In Shooting, US General Unhurt
 (Kandahar, oct 19, 2018):Gen. Abdul Razeq, one of Afghanistan's most powerful security offici
Putin says IS seized 700 hostages in Syria; executing some
Sri Lankan President assured of "fullest cooperation" by PM Modi
VP Naidu arrives in Brussels for 12th ASEM Summit
KERALA NEWS
Vijayan urges UAE Keralites to back salary challenge
 (Abu Dhabi, Oct 18, 2018): Kerala Chief Minister Pinarayi Vijayan has urged Keralite business
Sabarimala row: Protests against SC verdict continue
Balabhaskar's wife Lakshmi shifted to ICU
Idukki dam's one shutter opened
Untitled Page
Rashtra Deepika LTD
Copyright @ 2018 , Rashtra Deepika Ltd.