'BANKING' IN THE NAME OF 'FAITH': A LEGAL PERSPECTIVE OF ISLAMIC BANKING IN INDIA
Keywords:banking, islam, india
In India, banking laws are applicable to all classes of persons uniformly. Notwithstanding a few beneficial provisions permitted under the legal framework, banking services are generally open and accessible to all without any distinction. Thus, while providing their services, banks and financial institutions cannot ordinarily discriminate between persons or class of 1 persons. Having said that, in India, the demand for introducing Islamic banking has been raised from several quarters in the past. Whether as a tool of financial inclusion, or an alternate approach to micro-financing, or for its commercial and investment utility, the potential of Islamic banking in India has been the subject-matter of public discourse since 2000s. The expert 2 committees such as Raghuram Rajan committee (2007), RBI’s Deepak 3 4 Mohanty committee (2015) and Report of RBI’s Central Board (2016) recognised the problem of voluntary financial exclusion among Muslims in India due to the absence of interest-free banking products, and recommended introduction of ‘interest-free’ or Islamic banks as a possible solution.