India should open interest free banking windows in conventional banks as a pilot project, Muddassir Siddqui, a leading authority on Interest Free banking,said.
Making a strong plea for launching Islamic Banking in India, Siddqui, Partner and Head of Islamic Finance, Middle East, SNR Denton and Company, told reporters here that there was lot of ‘misunderstandings’ regarding Islamic Banking in India. ‘We are just asking for level playing field. We want it in conventional system. We do not want any favours’, he said.
On issues relating to recovery in cases of loan defaults, he said it is done the same way as conventional banking.
When pointed that the Union government had in a counter affidavit filed in the Kerala high court on Sept 9 stated that ‘it was not legally feasible for banks in India or its branches abroad to undertake Islamic banking activities’, he said discussions had been held with Union Finance ministry officials and RBI regarding Islamic banking. Recently, some documents were submitted to RBI. Several round of discussions have also been held with RBI officials, he said.
