Islamic Banking has no relevance: Govt

New Delhi: The objectives of financial inclusion for which Islamic Banking was explored by Reserve Bank of India (RBI) has no relevance, as Government has already introduced other means of financial inclusion for all citizens like Pradhan Mantri Jan Dhan Yojna, Pradhan Mantri Suraksha Bima Yojna, Pradhan Mantri Jeevan Jyoti Bima Yojna, Pradhan Mantri Mudra Yojna etc.

This was stated by Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in a written reply to a question in Lok Sabha today.According to the reply, Reserve Bank of India (RBI) had set up an inter-departmental group on Islamic Banking.

The Entire exercise was aimed at promoting financial inclusion, accessing huge market potential to attract finance from Gulf countries for infrastructure development.However, on consideration of the inter-departmental group report, it is observed that even to introduce limited products, various legal changes would be required. (UNI)