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RBI guidelines don't permit Islamic Banking

Posted on Nov 22, 09:05PM | UNI

Reserve Bank of India Governor Dr B Subburao today said Kerala's demand for Islamic banking in the state was not possible under current RBI guidelines.

Speaking to reporters here, Dr Subburao said amendments to the RBI rules would be required for this purpose and RBI had provided its views to the union government on the issue.

He said the next review meet on economic policy was slated to take place on December 18.

Dr Subbarao, who was here to declare Ernakulam as the first district in the country to achieve Meaningful Financial Inclusion, called upon states to make financial matters part of school curriculum to create awareness amongst the younger generation.

Kerala Chief Minister Oommen Chandy while inaugurating the event urged banks not to make repayment capacity of a student's parent a constraint for providing educational loans.

He said banks should ensure that educational loans were available to all needy students at affordable rates of interest.