Union Minister Mukhtar Abbas Naqvi on Sunday rebuffed the reports of introduction of Islamic banking in India, saying ours was a secular country and the existing banking system was for all.
Naqvi’s remark has come days after the Reserve Bank of India (RBI) decided to not pursue a proposal for introduction of Islamic banking in the country, while replying to an RTI query.
“India is a secular country and the existing banking system is for all. Therefore, we are not discussing anything on Islamic banking; neither are we planning to do so. There is neither any plan nor any proposal to allow Islamic banking,” Naqvi told ANI.
Islamic banking is a finance system based on the principles of not charging interest, prohibited under Islam.