RBI :No Introduction of Islamic Banking

Mumbai Nov 12: The Reserve bank of India has decided not to introduce Islamic Banking in India.The bank has replied its decision in an RTI query filed.

The apex bank has said that " the decision was taken after considering the wider and equal opportunities available to all citizens to access banking and financial services."

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

The apex bank has added that "the issue of introduction of Islamic banking in India was examined by the RBI and the government of India."

Earlier an RTI was filed and it has sought the steps taken to introduce Islamic or intrest free banking in India.

The RBI in the past has set up a committee and sought to introduce the Islamic banking in the country in 2008 but the idea didn't materialise because of the huge complexities involved.