The rising demand to allow Islamic banking in the country has led the Reserve Bank of India (RBI) to request the government to tweak existing banking laws. Once that happens, it is likely to fetch India billions of dollars in investments from countries in the Middle East.
RBI Governor D Subbarao said: “The Banking Regulation Act of India does not conform to Islamic banking because it allows banks to borrow from and deposit money with the RBI on interest. But we are in correspondence with the government on how our laws can be restructured or amended so that they are in conformity with Islamic banking.”……………………………………….Full Article: Source