India Sharia Finance


The Indians are well aware of Islam, and knows that no good can come from it, so they turn thumbs down on the notion of accepting Islamic banking. Yes, any non-Muslim state that shares a border with a Muslim one, or has a very sizable Muslim minority within it’s own borders, has completely different experience and understanding of Muslims and Islam than those who do not. The Indians are only using their common sense in dealing with this issue. KGS

India says no to Islamic banking

The Union Government today informed the Kerala High Court that it was not legally feasible for banks in India or its branches abroad to undertake Islamic banking activities.
In a counter affidavit, M M Dawla, Under Secretary in the ministry of Finance informed the court that this had been the stand of the Union Government even while giving replies to questions in Parliament as well as in response to various VIP correspondence on the subject.
The counter was filed on a petition by R V Babu of Hindu Aikya Vedi against an Islamic banks proposal .

Earlier, Janata Party leader, Subramaniam Swamy, had also filed a PIL against the establishment of the financial institution to be run on the model of Islamic banks with the support of Kerala State Industrial Development Corporation (KSIDC).

The stand of the government is that Non Banking Financial Companies (NBFC) should should basically commence or carry on the activities in accordance with provisions of RBI and directions issued there under.

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