Hurriyat Conference (M) chairman Mirwaiz Umar Farooq Friday expressed regret over the Reserve Bank of India’s decision not to pursue the proposal of introducing Islamic banking in the country.
“Express regret at Govt of India’s rejection to introduce #IslamiBanking due to its politically motivated religious agenda. #Kashmir has been demanding Islamic banking for a long time to accrue of the benefits of banking as per Islamic law and in turn help the economic growth of J&K,” Mirwaiz said on Twitter.
“Govt (is) blinded to the benefits that Islamic banking can bring to its people and overall economy. As per the IMF, Islamic finance assets grew at a double-digit growth rate from $200 US billion in 2003 to $1.8 trillion at the end of 2013 that include non-Muslim countries (like) China, Germany, UK & US,” Mirwaiz said.
In a major move, the RBI decided not to pursue a proposal to introduce Islamic banking in the country.
Replying to an RTI query, the central bank said the decision was taken after considering the wider and equal opportunities available to all citizens to access banking and financial services.
Islamic or Sharia banking is a finance system based on the principles of not charging interest, which is prohibited under Islam.
Mirwaiz said the people of Kashmir have been demanding Islamic banking for a long time now.