Kochi:
The Indian Forum for Interest Free Banking, Jeddah, said on Monday that it was keen to fund some projects being showcased in the three-day 'Emerging Kerala' meet beginning in Kochi on September 12.
However, the projects should comply with the Islamic bank norms, Abdul Raqeeb, Secretary General, Indian Centre for Islamic Finance, New Delhi, told reporters in Kochi.
He said Indian banks should have Islamic banking window, which would help mobilisation of funds from NRKs worldwide.
The forum had met state government officials in this regard and were also trying to meet Prime Minister Manmohan Singh, during his two day-visit to the state for the inauguration of the Emerging Kerala.
Mr Raqeeb urged the state government to support the interest free system to ensure greater flow of funds from Gulf investors.
Interest-free finance would boost India's small and medium enterprises that account for 80 per cent of total business, thus leading to strengthening the country's economy, he said.
It can also be used to upgrade the country's infrastructure and promote a new culture of finance that would accelerate production, increase employment and reduce poverty, he said.
Interest free banking was expanding and existed in 140 countries, including UK, France and Japan, he added.
Khurshid A Najmi, former legal adviser of RBI, said it was for the RBI to grant license to operate on participatory banking. No changes in banking laws are required for permitting interest free banking, he said.