RBI allows Islamic banking in Kerala: Media Report

RBI allows Islamic banking in Kerala: Media Report
The Reserve Bank of India (RBI) has allowed Kerala government to launch a non-banking finance company (NBFC) based on the principles of Islamic banking, according to a media report.

The report said that Kerala State Industrial Development Corporation will float this NBFC called Cheraman Financial Services Limited (CFSL) with an authorised capital of Rs 1,000 crore.

In line with the principles of Sharia, this NBFC will abstain from fixed or floating payment or acceptance of specific interest or fees (known as riba, or usury) for loans of money. The entity will target sectors like infrastructure, services and manufacturing sectors while resisting investing in businesses that provide goods or services considered contrary to Islamic principles.

Dion Global Solutions Ltd.

Read more about: rbi, islamic banking, kerala
Story first published: Monday, August 19, 2013, 9:10 [IST]
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