RBI proposes ‘Islamic window’ in banks

Both the Centre and RBI are exploring the possibility of introduction of Islamic banking for long to ensure financial inclusion of those sections of the society that remain excluded due to religious reasons. 

“In our considered opinion, given the complexities of Islamic finance and various regulatory and supervisory challenges involved in the matter and also due to the fact that Indian banks have no experience in this field, Islamic banking may be introduced in India in a gradual manner. 

“Initially, a few simple products which are similar to conventional banking may be considered in Islamic window of the conventional banks after necessary notification by the government. 

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