The Reserve Bank of India recently floated the idea to implement Islamic banking in India.
When weighing the options, there are several important facts about India that must be considered.
The international Islamic banking phenomenon has gone from zero to $2 trillion in the 40 years since it was established
India has a population of over 170 million Muslims, up from around 70 million in 1976.
Many within this Muslim population do not participate in the financial arena because of their faith.
To combat this, the Reserve Bank of India is considering adding an Islamic window at banks for Muslim clients.
This would allow those who do not permit usury (riba), the acceptance of excessive interest charged and given by banks, to become full participants in the banking community.
It would also open the window to equitable, compassionate, supportive, and encouraging banking environment offered by Islamic banks.
Read more at DailyO.