No deadline has been set for introduction of Sharia or interest-free banking in India, the Reserve Bank of India (RBI) has said.
Islamic or Sharia banking is a finance system based on the principles of not charging interest, which is prohibited under Islam.
The RBI had earlier proposed opening of “Islamic window” in conventional banks for gradual introduction of Sharia-compliant banking.
Responding to an RTI application, the RBI said it has not taken any step to introduce Islamic window in banks for gradual introduction of Sharia-compliant interest-free banking in India.
“RBI has not set any deadline for introduction of interest-free banking,” the central bank said in response to a RTI query filed. However, on the instruction of the central government, an inter-departmental group (IDG) set up in RBI has examined the legal, technical and regulatory issues for introducing interest-free banking in India and has submitted its report to the government, it said. The RBI had in February last year sent a copy of the IDG to the finance ministry.