Banking regulator, Reserve Bank of India is seeking approval from the government so as to allow the establishment of the first islamic bank in the country. Turkey's Bank Asya is ready to offer Shariah compliant banking facilities in India.

"So far the bank has only sought permission to open a representative office," a finance ministry official said. "We are considering their application ."

RBI has requested the government that the application filed by the Turkish bank be considered in 45 days time. The bank is aiming to bring interest free products to the country. It was started in Turkey in the year 1996 and currently has 179 branches.

"After the global economic crisis, RBI has been stringent with allowing foreign banks in the country," the finance ministry official said. "As a part of its liberalised policy for foreign banks, it has now granted permission to Bank Asya."