RBI welcomes Islamic Banking

RBI shows a positive face to Islamic Banking. This is a lot to happy to those who expect an interest free banking system in India.

RBI Governor expressed his view in a reply letter to the minority affairs minister of India to a letter asking for an alternative banking system for Muslims

Rahman Khan( Minority affairs Minister of India) said “I have written to the RBI Governor, invoking section 25 of the constitution, saying that it was the duty of the state to facilitate every citizen to practice and follow his/her religion” in the situation that Muslims are given no option other than interest-based banking.

Why India Needs Islamic Banking

Recently the whole globe faced financial depression mainly U.S and Europe, and we also saw that those countries based on interest-free economic system.

This is the scope for Islamic banking or interest free banking in India. Recently the Jeddah chapter of IFIB (Indian Forum for Interest free Banking) has submitted a memorandum to Salman Khurshid (External Affairs Minister of India).

They demands Interest-free banking in India because many Indians working in Saudi Arabia wishes to invest their money in India’s infrastructure and other Developmental activities, but they are staying because of the interest based financing in India. If the govt. decides to allow interest free banking it will never be a worse decision.