KPMG for Islamic banking

| Wednesday, April 28, 2010

Global consultancy firm KPMG on Tuesday pitched for Islamic banking products in the country and urged the RBI to come out with norms for these interest-free saving instruments along with proposed guidelines on fresh banking licences.
“The scope for launching Islamic finance products is huge here as the savings of Muslim population is untapped. The government should come out with a regulation on the governance of Islamic banking products so that banks can launch such products soon,” KPMG executive director for corporate finance and head financial services, Mr Abizer Diwanji said.
According to KPMG, as the RBI is planning to issue fresh banking licences, it should also consider coming out with a guideline specifically for banks providing Islamic products. “India has the potential of becoming the next big market for Shariah finance in the world,” he said. Accor-ding to the Shariah, payment of interest is barred, besides any kind of speculative activities.

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