VHP against Islamic Development Bank’s plan to open branch in India

Ahmedabad: Vishwa Hindu Parishad(VHP) today expressed reservations over Saudi Arabia-based Islamic Development Bank’s plan to open its branch in India.

VHP joint general secretary Surendra Jain, who is here to attend a two-day meeting to discuss various issues, said they will also deliberate on the strategy to oppose the opening of the branch of IDB.

He said such banks are against the Constitution and banking norms set by RBI.

Jeddah-based IDB recently announced that it will open its first Indian branch in Ahmedabad. India’s EXIM bank had signed an MoU with the IDB for a $100 million line-of-credit to facilitate exports to IDB’s 56 member countries.

“Islamic banks are guided by the Shariat (Islamic law) and will operate without regulatory control by the RBI. To allow them entry through backdoor without any national-level debate is not justified. India is a secular country, and banking activities are also secular, so there should be no room for Islamic banks here,” he said.

PTI