FINANCIAL INCLUSION

Islamic Banking: A Necessary Step Towards The Financial Inclusion Of Indian Muslims

In a report released last December by the committee on the medium-term path for financial inclusion, the Reserve Bank of India (RBI) broached the concept of "Islamic banking", which refers to the provision of interest-free products to achieve the targets of wider financial inclusion. The report of the RBI committee, headed by Deepak Mohanty, strongly recommends that commercial banks in India be enabled to open specialised interest-free windows. Hopefully, such a move will not be criticised as preferential treatment or economic appeasement.