No plans to introduce Islamic banking in India

India has a wide network of different banks to meet the financial needs of people and hence the government has no intention to consider introducing Islamic banking, Union minister Mukhtar Abbas Naqvi today said.
#####What is Islamic banking#####
Islamic or Sharia banking is a system of finance in which interest is not charged.
"In India, the government will not allow Islamic banking, because India is a secular and democratic country,"
#########Background######
In late 2008, a committee on Financial Sector Reforms, headed by former RBI governor Raghuram Rajan, had stressed on the need for a closer look at the issue of interest-free banking in the country.
#########Committee report#######
"Certain faiths prohibit the use of financial instruments that pay interest. The non-availability of interest-free banking products results in some Indians, including those in the economically disadvantaged strata of society, not being able to access banking products and services due to reasons of faith," the committee had said.
######Financial inclusion########
Jan Dhan Yojana: Prime Minister Narendra Modi had on August 28, 2014 launched Jan Dhan Yojana, a national mission to bring about comprehensive financial inclusion of all the households in the country.


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