Islamic Banking

What is Islamic Banking?
  • Islamic banking is banking or banking activity that is consistent with the principles of sharia and its practical application through the development of Islamic economics.
  • Sharia prohibits the fixed or floating payment or acceptance of specific interest of fee for loan of money.
  • It is different from regular banking in that it prohibits earning of interest (or riba) through the business of lending.
How RBI going to implement it?
The Reserve Bank of India (RBI) has decided not to pursue a proposal to introduce Islamic banking in India. Decision in this regard was taken after considering wider and equal opportunities available to all citizens to access banking and financial services.

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