A pilot project on implementation of interest free banking in conventional Indian banks has been proposed by Muddassir Siddqui, a leading authority on interest-free banking.

Siddqui, Partner and Head of Islamic Finance, Middle East, SNR Denton and Company, said that there was lot of ''misunderstandings'' regarding Islamic Banking in India. ''We are just asking for level playing field. We want it in conventional system. We do not want any favours'', he said.

''We held close interactions with finance ministry and RBI officials. We hope the ice is breaking'', he said.

He said that interest free banking would allow opportunities in the form of major investments coming to India from West Asian regions.

A two day conference on Islamic Finance in India is being held from tomorrow to create awareness about the banking system.