Wednesday 19, September 2012 by Robin AmlĂ´t

Interest-free in India?

In March this year Minister of State for Finance Namo Narain Meena told the Rajya Sabha (Council of States – the upper house of the Indian Parliament) that he had been informed by the central bank, the Reserve Bank of India, that ‘it is not legally feasible for banks in India to undertake Islamic banking activities’. This was not the first time that the idea of Islamic finance had been knocked back in what is, after all, the country with the world’s third largest Muslim population.