Islamic Development Bank looks at introducing Islamic financing

IDB also looking at starting interest-free banking in country

Islamic Development Bank (IDB) is set to initiate talks with the Reserve Bank of India to allow them to introduce Islamic Financing in India.

Islamic finace refers to the ways by which corporations who are a part of the IDB group, including banks and other lending institutions, raise capital in accordance with Sharia, or Islamic law.

IDB, is also looking at starting interest-free banking in the country where in instead of extending cash loans, the lender buys and leases the product for which loan is required. And it earns rental on it.