often profit participating payments are subject to tax while interest payments on loans are tax deductible;  •  ensure flexibility in selection of assets for Islamic tranche;  •  understand issues surrounding asset risks; and  •  provide for payment of insurance and maintenance expenses for Islamic financed assets etc.
Extend the outreach of financial services in a holistic manner with focus on underserved regions and poor and vulnerable groups. Islamic banks will be allowed to pursue their plans for branch expansion as long as Islamic banks, like conventional banks, open at least 20% of new bank branches in rural areas.