<h1>RBI Reviews Report on Introducing Islamic Banking in India; Awaiting Further Clarification on Legal and Regulatory Issues.</h1> The government established a Committee on Finance Sector Reforms, led by Dr. Raghuram Rajan, which recommended expanding interest-free finance, including through the banking system. The government instructed the Reserve Bank of India (RBI) to clarify legal, technical, and regulatory issues before introducing Islamic or alternative banking in India. Consequently, an Inter-Departmental Group within the RBI was formed to examine these issues. The group has submitted its report, which is currently under RBI's consideration. This information was disclosed by the Minister of State in the Ministry of Finance in a written reply to the Lok Sabha.