By Saiyed Danish, TwoCircles.net,
New Delhi: In order to meet the challenges of economy through interest free banking, a group of Muslim members of Parliament have sent a letter addressed to the Union Finance Minister P Chidambaram over the same.
“We the under signed Members of Parliament would like to bring Financial Instruments recommended by the High Level Committee on Financial Reforms,” reads the opening line of the letter. CFSR of the Planning Commission of India (2008) is currently headed by Dr. Raghuram Rajan, Present Governnor of Reserve Bank of India.
The letter, a copy of which is with TCN, has also cited Chapter 3, page 72 of the recommendations titled ‘Broadening Access to Finance’ in bold letters to further its cause which reads:
“The Committee recommended measures be taken to permit the delivery of interest-free finance on larger scale, including through the banking system. This is in consonance with the objective of inclusion and growth through innovation. The Committee believes that it would be possible, through appropriate measures, to create a framework of such products without any adverse systematic risk impact.”
The letter asserts that many foreign countries like the UK, France, Japan, Singapore and Hong Kong have been practising Interest free Banking/ Alternative finance and that through this window of opportunity India will be able to meet its requirements “CAD” and “attract FDI to boost funding for infrastructure development through instruments like ‘Sukuk’ as suggested by ‘Standard & Poor’ and help to stabilize economy.
The signatory MPs, ten in total, in the letter have demanded to take necessary action to implement ‘Interest Free Finance’ as recommended by Dr. Raghuram Rajan committee “to meet the inclusive financial policy of the Government.”
“We request you to arrange a consultation with the concerned authorities including the Governor of RBI for sorting out Legal and Technical apprehensions to implement the Recommendations on the subject. We will extend necessary Subject expertise,” demands the letter.
Among the noted MPs who have signed this letter is Ali Anwar Ansari, Rajya Sabha MP, (JDU), Hussain Dalwai, Mohd. Salim Ansari, Shafique Rahman Burq, Shariq Sharifuddin, Sabir Ali, Mohd. Adeeb.