State Bank of India announced that bank will launch a Shariah-compliant mutual fund. In the coming month the bank will come up an Islamic financial instrument. For the time bank is introducing such an initiative for the 170 million Muslim population of the country.
The bank has reported that bank has got the RBI’s nod to launch the Shariah complaint. The Islamic banks are a bit different, they offer products such as Sukuk and they don’t charge any kind of interest on them. An SBI official said the country’s biggest lender had received all clearances to launch its Shariah Equity Fun There has been lot many issues regarding the establishment of Shariah-based banking, finally SBI has decided to launch it.