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Saturday, September 26th, 2020

Islamic Banking - RBI had set up an inter-departmental group on Islamic Banking

INVC NEWS New Delhi,
Reserve Bank of India (RBI) had set up an inter-departmental group on Islamic Banking. Entire exercise was aimed at promoting financial inclusion, accessing huge market potential to attract finance from Gulf countries for infrastructure development. However, on consideration of inter-departmental group report, it is observed that even to introduce limited products, various legal changes would be required. Moreover, the objectives of financial inclusion for which Islamic Banking was explored by RBI has no relevance, as Government has already introduced other means of financial inclusion for all citizens like Pradhan Mantri Jan Dhan Yojna, Pradhan Mantri Suraksha Bima Yojna, Pradhan Mantri Jeevan Jyoti Bima Yojna, Pradhan Mantri Mudra Yojna etc. This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance

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K ANajmi, says on December 15, 2016, 11:21 AM

The reason why Islamic Banking Should be allowed is not only to facilitate Financial Inclusion but also because it is more borrower friendly.while it is possible to use it for large loans, its introduction is highly desirable to serve the credit needs of poor and marginalised segment of the society. We are familiar with the conventional system which has led to number of suicides by not so rich people. Call it "vaidic system" or Buddhist syatem or what ever name one may choose but it is worthwhile to experiment the use of it. Those who oppose have not cared to understand how it works.