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Islamic Window to be considered in conventional banks

The Reserve Bank of India (RBI) in a letter to the finance ministry has put forward a proposal to open an ‘Islamic window’ in conventional banks. The move is a stepping stone to its consideration of introducing Islamic banking in the country. 
●    The RBI and the Union Government have been exploring the possibility of  introducing the Sharia-based foundation since quite long in order to include even those sections of the society that remain outside the banking circuit due to religious reasons. 
●    The information was revealed when a copy of the letter was sent to Press Trust of India, in response to an RTI filed by it.  
●    Islamic banking may be introduced in the country in a gradual manner, considering the inexperience of Indian banks in the sphere and complexities of Islamic finance. 
●    At first, only products similar to those of conventional banking will be considered for introduction through an Islamic window at the conventional banks.
●    The full-fledged introduction of Islamic banking will be considered at a later stage, based on the experience gained during the time. 


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