Islamic Banking In India: Opportunities And Challenges

India has 14 percent Muslims population which is more than the Muslim population of Bangladesh, turkey, Egypt, Iran, Nigeria, Afghanistan, Sudan, Iraq, Saudi Arabia etc But there is no any full developed Islamic bank currently working in this country. Islamic banking is defined as a prearranged institutional structure intended to spread the function of the interest-free banking. The Central Bank i.e. RBI and other legal institutions of India did not issued license to banks to work as per the doctrine of Islamic banking because of several legal hindrances in operating Islamic banking in India. The paper is primarily based on secondary sources of data. Furthermore the paper discusses the basic concept of Islamic banking , it’s need and benefits in implementing in India. Moreover it also highlights the impediments or obstacles in the enactment of Islamic banking in India.