04.03.2013 - Law to tighten reins on Islamic banking
Traditional commercial banks will have to close their Islamic banking wings, and only the full-fledged Islamic banks will be allowed to offer the shariah-based services. If commercial banks offer Islamic banking along with traditional services, the main spirit of the Islamic banking is hampered, a finance ministry official said. The change has been incorporated in the amendment to the Banking Companies Act, which is likely to be placed in a cabinet meeting today for approval. The law will also have stringent measures to curb frauds in fund collection from people in the name of deposits, and scams in the banking sector. If any non-bank organisation collects deposits from the public, it will have to take approval from the central bank, according to the proposed amendment...............................................Full Article: Source
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