India banking reforms focus on Islamic finance

[ChristineMarie]

India banking reforms focus on Islamic finance

India is planning to overhaul regulation of its financial system to attract investments from the Gulf and to encourage its largely unbanked Muslim population to save money in a way compliant with their religion, a senior government adviser has said.

K Rahman Khan, deputy chairman of India’s upper house of parliament, told the Financial Times that the ruling Congress Party is proposing reforms to the finance ministry, the Reserve Bank of India and Securities and Exchange Board of India to allow for the introduction of Islamic financial services

“Islamic finance has been growing at a steady pace and it is the most attractive form of alternative [banking] system in the financial sector, it makes no sense for India to exclude itself from this success story,” said Mr Khan.

http://www.ft.com/cms/s/0/467598bc-0...44feabdc0.html