To introduce Islamic Finance and Banking in India, we have to: (1)  Undertake regulatory changes in the Indian Banking Acts, and (2) Create awareness among Muslims and Indians as a whole. 

While analysing the regulatory changes, two important documents of the government and two important developments from the public-private participation have to be studied in detail and analysed in depth.

 

To discuss the feasibility of Interest-Free Islamic Banking in India, a delegation headed by H Abdur Raqeeb, General Secretary New Delhi based Indian Centre for Islamic Finance (ICIF) met Union Finance Minister Pranab Mukerjee in Kolkata, and submitted a memorandum to him on October 24. The Finance Minister went through the 3-page memorandum and keenly read the recommendations of Raghuram Rajan Committee on Financial Sector Reforms – CFSR on Interest-free banking.

The CFS...