Tuesday, August 20, 2013

RBI approves Sharia-compliant NBFC financial services



Cheraman Financial Services Ltd (CFSL), a Kerala based , company has received certificate of registration from the Reserve Bank of India to function as a non-deposit-taking Non-Banking Finance Company (NBFC). 

 It is established with the co-operation of private investors mostly Gulf-based NRIs and  Kerala State Industrial Development Corporation KSIDC to provide interest free loans. The company intends to introduce leasing and equity finance, based on the economic principles of Sharia. Under the interest-free financing mode, the risk is shared between the financier and the customer depending on the product. The Sharia law does not allow funding to conventional banks and NBFCs, insurance, securities trading, entertainment, film production, cable TV, music, explosives, alcoholic beverages, tobacco, pork and non-Halal foods and gambling.

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