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India May Introduce Islamic Banking

by Amwal Al Ghad English

The government is considering introducing Islamic banking in the country. The Ministry of Finance recently asked the Reserve Bank of India (RBI) to reconsider such a possibility.

The RBI formed a committee to look into the matter after Prime Minister Manmohan Singh’s visit to Malaysia in 2010, when Singh indicated that the government was open to the idea of a banking system that could address the long-standing concerns of the business section of a minority community.

Experts believe that in order to tap the immense investment potential of the oil-rich Middle East, it was in India’s interest to introduce Islamic banking.

An official of the National Committee on Islamic Banking told Gulf News: “It will provide the opportunity to bring a large section of the Muslim population into the mainstream. It is a sophisticated banking and finance structure based on moral and social values and is compatible with modern-day financing needs.”

Gulfnews

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