Plan to set up Islamic banking institutions in Kerala, India
A proposal to set up financial institutions based on the principles of Islamic banking to attract interest free deposits from Non Resident Keralites is being considered by the Kerala government, Finance Minister T M Thomas Isaac said today.
Speaking to reporters on the sidelines of a function here,Isaac said the proposal was mooted by the industries department to attract investment to the state.
The consultant appointed to study the feasibility of such financial institutions in the state has already given a go ahead to the proposal, he said.
“The banking institutions will not give interest to depositors and will not take interest from borrowers,” he said.
The investment would be used to set up industrial ventures and infrastructure projects and the profit from such ventures will given to the depositors.
