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Banking Regulation Act does not oppose Islamic Banking: Ex-Director, RBI
Submitted by admin3 on 26 July 2009 - 11:23pm.
By Rehan Ansari,
Mumbai: “Unless there are amendments in the Banking Regulation Act of India, 1949, Islamic Banking system can be introduced in India,” said Abdul Hasib, former Director, Reserve Bank of India. The Islamic Banking system will be helpful for underprivileged and marginalized people, he said.
He was addressing a seminar on Global Financial Crisis and Islamic Economic System organized by Jamaat-e-Islami Hind in Mumbai on Saturday. Advocating for introduction of Islami Banking in the country Abdul Hasib said: the high profile Raghuram Rajan Committee on Financial Sector reforms in India has advocated the introduction of Islamic banking in India. He also differentiated between Islamic financial system and interest free banking and said that many other countries have started Interest Free banking.
While the world is facing the severest Financial Crisis in the new century there is an exception to it. Islamic banking and financial system has largely been unaffected and more so proved to be resilient because it’s transparent, ethical and based on sharing and caring, observed Abdur Raqeeb, convenor, National Committee on Islamic Banking. While France, Japan, UK and other countries have opened the door for this Multi Billion dollar business, India should not distance itself, he urged. He also shunned the misconception that Islamic financial system is for Muslims only. He said it is for all human beings. It makes sure that the monitory resources do not remain among few rich but revolves in the whole society.
Interest and no transparency are the basic factor of deepening financial crisis where billions of dollars were lost, Dr.Sharique Nisar an Economists and expert in Islamic Banking explained. He also explained different Islamic Financial Products prevailing in the world like, Musharakah, (Participation), Mudarabha (speculation), Qarde Hasna ( Interest Free Loan), Ijara, (Leasing). He urged, “The people must be taught about this alternative financial system which is just and fair and a general awareness must be created.
Maulana Riyaz Ahmed Khan, Vice President Jamaat-e-Islami, Hind, Maharshtra, concluded: “The current financial system has resulted the accumulation of the Financial resources into the 20 percent of the population and majority is fighting for only 20 percent of the wealth. He also added, “Islamic financial system is aimed at reversing the scene and aimed at the welfare of the society and not of the rich.”
Dr.Rahmatullah, Economists, JF Patil, Head of Economic Department, Kolhapur University also addressed the gathering.
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islamic banking
what are the problems and reasons hindering islamic banking and finance in india?
is it allow for a muslim to work in a non islamic bank
is it allow for a Muslim to work in a non Islamic commercial bank or not and if it is not allow why is it not allow
also if it is not allow is it that all the sectors are not allow or some sectors allow
banking job, is it ok???
Dear friend,
According to learned Islamic Scholars, If there is an alternative, you should avoid a bank job. When already there into it, you should avoid involvement in interest related activities. Banks do have non-interest transactions/activities too. Funds transfer,
Current Accounts, Performance Guarantees,
Administration are some of such activities.
In all circumstances those who are into the job should avoid availing interest related services of the bank for self too.
No it is not allowed for a
No it is not allowed for a Muslim to work in a non Islamic Bank, whether commercial or not, because its Haraam the Shariah way (Islamic way), Reason:Because their(non Islamic banks) functioning is based fully on INTEREST, which is HARAAM. Although, almost each one of us (in India) is associated with Interest (Saving Accounts, Salary Accounts etc), and thus cannot save ourselves completely. But we should minimize our involvment as much as we can. Regarding sectors, which in HALAAL (which are of human profit) sectors like Education, Agriculture, Transport, Construction etc. and not which deals in Alcohol, Hotels, Entertainment, Gambling etc.
jamaat-e-islami Maharashtra & Islamic banking
Is there any programme held in maharashtra about Micro-finance and marathi muslims.providing interest-free small loan to needy is the urgent, recently we see the case in Hyderabad. So called ISLAMIC BANKING in India would also require the collateral which usually our community could not provide that is why 80% of the wealth is concentrated in the hands of 20%.JIH MAHARASHTRA must develop a wide network of micro-credit units, the deprived community needs.After all, the programme held is also very much needed.
collaterals for islamic banking lending??
Dear Taleemuddin!
Islamic banking doesnot mean charity. It stands for humane approach for financial problems and needs. Collaterals are offered when a large amount is borrowed. Why not encourage Micro finance concept for the poor and needy? Please read the concept by sparing some of your precious time. Can we afford to give funds of the depositors to the borrowers just like that?
Islamic banking has arrived, is conquering and will there be everywhere In sha Allah.
Then Socialist concept and now Capitalist is in ICU. It is for every one to see. Let us create climate, environment of mutual confidence.
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