‘ Interest- free’ Islamic banking in offing

The minority affairs ministry is working with the Reserve Bank of India to introduce the " interestfree" Islamic banking system, which will enable over 15 crore Muslims to use banking facilities without tinkering with the Islamic code of belief that prohibits them from earning any interest. It may provide " vehicles of financial instruments which can facilitate interest- free financial products, including loans, for the community's benefits," says Minority Affairs Minister K Rehman Khan, who wrote to the Reserve Bank of India Governor D Subbarao last month, to first introduce some financial instruments as a pilot. He had suggested that the RBI set up a committee to examine the possibility of such financial instruments........

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