India seems to be on the cusp of embracing Islamic finance more fully. Arab News reports that India hopes to set up a body to license and monitor Islamic banks. "The formation of the entity is an important step forward. We need to set a framework for rules for different financial products to be offered by these banks or through the Islamic banking windows," Rahman Khan, India's minister for minority affairs told the newspaper. "We will introduce a financial product like Tabung Haji which would be a great relief to those who want to undertake the pilgrimage," he is reported as saying.
In 2013, the Reserve Bank of India, began licensing non-banking financial institutions offering Shari'ah compliant products. Readers of The Islamic Globe will remember our coverage of Kerala-based Cheraman Financial Services Limited, which was first such entity to acquire such a license. Cheraman hopes to offer Ijarah and equity-finance products. Read more at www.theislamicglobe.com