KOCHI: Reserve Bank Governor D Subbarao today ruled out introduction of Islamic banking in the country but said other methods for channelising funds based on the principles of Islamic law can be looked at.
“Islamic banking is not possible”, he said, adding the central bank could look at other vehicles based on Islamic banking principles to channelise NRI funds.
Replying to a question on the issue, Subbarao said: “There are some legal problems. We have studied the issue. We appreciate the objectives behind the request. But there are some legal problems. It can be got around not through banking, but other vehicles”.
He said that introduction of such banking was not possible in absence of a separate law for Islamic banking.
One step forward, two steps back? What are the other vehicles?
Elsewhere in India this week, the last of the known Mumbai killers was sent to allah by the infidels.