Reserve Bank of India said that Interest-Free Banking in India will take some time and its deadline are not set yet. The Interest-free banking or sharia banking is based on the main principle of 'no interest charges'.
The statement was given by the Central Bank, "In our considered opinion, given the complexities of Islamic finance and various regulatory and supervisory challenges involved in the matter and also due to the fact that Indian banks have no experience in this field, Islamic banking may be introduced in India in a gradual manner."
The statement given by the committee stated, "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."
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