Islamic banking hits deadlock

No relevance, GoI has introduced Jan Dhan: Union Fin Min

Virtually ruling out introduction of Islamic banking, the Finance Ministry today said it has “no relevance” as the Government of India has already introduced a host of financial inclusion schemes like Jan Dhan.
The objectives of the financial inclusion for which Islamic banking was explored by RBI has no relevance, as government has already introduced other means of financial inclusion like Jan Dhan Yojana and Suraksha Bima Yojna for all citizens, Minister of State for Finance Santosh Kumar Gangwar said in a written reply to the Lok Sabha.

He further said RBI had set up an interdepartmental group on Islamic Banking and the entire exercise was aimed at promoting financial inclusion, accessing huge market potential to attract finance from Gulf countries for infrastructure development.
“However, on consideration of inter-departmental group report, it is observed that even to introduce limited products, various legal changes would be required,” he said.