RBI says no permission given to Islamic Development Bank (IDB) to operate in India

RBI in a reply to an RTI filed by Subramanian Swamy, states that no Sharia Bank license was given to IDB Saudi Arabia

RBI in a reply to an RTI filed by Subramanian Swamy, states that no Sharia Bank license was given to IDB Saudi Arabia
RBI in a reply to an RTI filed by Subramanian Swamy, states that no Sharia Bank license was given to IDB Saudi Arabia
Rejecting a series of media reports, Reserve Bank of India (RBI) said that no permission was accorded to Saudi Arabia’s Islamic Development Bank (IDB) in India.  RBI also said on verification that they found IDB has opened an office in Hyderabad without a board and engaged in collecting application forms for scholarship to Muslim students.

RBI was responding to a Right to Information (RTI) application filed BJP leader Subramanian Swamy.

“RBI has not accorded any permission to Islamic Development Bank (IDB) to start its operation in India,” said RBI categorically. RBI was responding to a Right to Information (RTI) filed BJP leader Subramanian Swamy.

Many newspapers widely reported that IDB was going to open a branch in Gujarat and going to function according to the rules of Sharia. “Incidentally on the basis of newspaper reporting on operation of IDB in India, our Hyderabad Regional Office had undertaken an incognito visit to the IDB’s office situated there. It was observed that the office had not displayed any board indicating name of the bank and was not undertaking any banking activities. They were acting as a nodal agency, collecting application forms for students to forward to Muslim Education Trust, New Delhi,” said RBI.

RBI also said that they have contacted their counterparts in Saudi Arabia for information regarding IDB. Saudi Arabia’s monetary agency requested RBI to take up the matter directly with IDB, said the central bank.

“Our concern arising out of the reported operation of IDB in India was communicated to Saudi Arabian Monetary Authority (SAMA) who informed that the Islamic Development Bank (IDB) is a multi – lateral financial institution having headquarters in Jeddah, Saudi Arabia and is not supervised by them. They had requested to take up the mater directly with the institution. Accordingly, RBI is in correspondence with IDB in the matter,” RBI added.

Swamy tweeted the response from RBI to his RTI petition: https://twitter.com/Swamy39/status/838669667484991488.

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