The Reserve Bank of India (RBI) has said that it has decided not to pursue a proposal for introduction of Islamic banking in the country. As per reports, the decision was taken after considering the wider and equal opportunities available to all citizens to access banking and financial services. Islamic or Sharia banking is a finance system based on the principles of not charging interest, which is prohibited under Islam.
Commenting on the issue, a RBI Official told the media, “The issue of introduction of Islamic banking in India was examined by the RBI and the government of India,” "Taking into account, the wider and equal opportunities available to all citizens to access banking and financial services, it has been decided not to pursue the proposal further," he added. As per reports, the RBI had in February last year sent a copy of the IDG report to the finance ministry and recommended an "Islamic window" in conventional banks for gradual introduction of Sharia-compliant banking.