A proposal to set up financial institutions based on the principles of Islamic banking to attract interest free deposits from
Non Resident Keralites is being considered by the Kerala government, finance minister T M Thomas Isaac said.
Speaking to reporters on the sidelines of a function here,Isaac said the proposal was mooted by the industries department to attract investment to the state.
The consultant appointed to study the feasibility of such financial institutions in the state has already given a go ahead to the proposal, he said.
"The banking institutions will not give interest to depositors and will not take interest from borrowers," he said.