No steps have been taken in India for the introduction of Shari’ah-compliant mutual funds, despite the government making plans for their introduction in December 2014.
The Reserve Bank of India (RBI), replying to a request for information, said that it had given the government advice on the setting up of an Islamic-compliant financial system. It claims to have done so the very same month the government started its plans.
According to Live Mint, the State Bank of India planned to do the same, but deferred on its comments. It wanted to make “a better and more attractive” fund in the future.
“It is a misconception that Sharia-compliant mutual funds are beneficial to a particular community,” H Abdur Raqeeb, general secretary at the Indian Centre for Islamic F...
: 02 August 2017
Replying to an RTI application, the central bank said the Government of India had sought its comments on the launch of Sharia-compliant mutual funds by State Bank of India in December 2014.
New Delhi: No steps have been taken for the introduction of Sharia-compliant mutual funds in India, the Reserve Bank of India (RBI) has said.
Replying to an RTI application filed by a PTI correspondent, the central bank said the Government of India had sought its comments on the launch of Sharia-compliant mutual funds by State Bank of India in December 2014.
The RBI submitted its reply the same month, it said.
The Islamic or Sharia-compliant financial system is based on the principles of not charging an interest on deposits, as it is prohibited under Islam.
: 02 August 2017
The ‘Halal Fayidah’ bank aims to attract devout Muslims who are out of the conventional banking system as giving and charging interest is against Islamic law.
by TA Ameerudheen July 28
An interest-free cooperative bank modelled on the lines of the Islamic banking system – possibly the first of its kind in India – was launched in Kerala on Monday with the support of the Communist Party of India (Marxist).
Islamic banking is a system that complies with the Shariat or Islamic law. Under the tenets of the Shariat, charging or offering interest is looked at as an excess (or Riba).
The bank, in Kerala’s Kannur district, hopes to attract investments from devout Muslims who had kept away from the formal interest-based banking system as it went against their reli...
: 28 July 2017
CONCEPT OF ISLAMIC FINANCING MAKES ITS MARK IN TELANGANA
By Md Nizamuddin
Hyderabad: The concept of ‘Islamic finance’ has made its mark in Telangana. The Seva registered as Mutually Aided Cooperative Credit Societies (MACCS) started its operations in Sangareddy in 2012 and has helped thousands of small businessmen to come out of the clutches of the financiers, who otherwise charge hefty interest rates.
With over 7,000 members spread across 13 branches in the state, the institution has made a turnover of Rs 11 crore during the last fiscal. Apart from Telangana, the Hyderabad-based MACCS is also running its operations in Guntur and has plans to establish branches in Mahbubnagar, Khammam, Karimnagar and Koratla shortly.
The Warangal branch which began its operati...
: 18 July 2017
CHRISTIAN,MUSLIM HOUSEHOLDS TOP IN DONATIONS FOR CHARITY
But in absolute terms, Hindus contributed maximum in 2014-15, thanks to larger population, according to National Sample Survey data
Hindus donated a little over ₹15,600 crore as religious contribution in 2014-15 — six times the quantum donated by Muslims — but the per-household contribution of Muslims is marginally higher than that of Hindus, as they are enjoined by religion to give to charity.
But the per-household religious contribution of Christians is the highest among all communities, as per data from the 72nd round of National Sample Survey (NSS) on Household Expenditure on Services and Durable Goods. The data were recently extracted from the NSS’ raw findings by a team of researchers led by Sabir Ahamed ...
: 17 July 2017
It was 10 am, which meant that the time for transactions had officially begun. On a weekday morning in mid June, Anjum, a 42-year-old jewellery seller, arrived at the Al-Khair Cooperative Credit Society’s Delhi branch, in a tall building in Okhla. Clothes-lines ran through the small office, which doubles as a makeshift guest house for visitors from far-off places who need a place to stay.
With 13 branches across India, Al-Khair is an Islamic-finance organisation; it operates according to an ethical framework inspired by Islamic texts and values. Anjum had arrived at the Delhi branch in search of a small loan of R15,000, to purchase raw materials for her jewellery business. She chose to approach Al-Khair instead of a conventional bank, she told me, because conventional banks &ldquo...
: 14 July 2017
(Special to ViewsHeadlines.com)
Zakat is not very wisely practiced by Muslims in India. The management system for zakat is elementary. Even now the public opinion is that it is enough to hand a few kilos of flour or some length of cloth and a few hundred rupees is what should be given to beggars and relatives in need. And after a month or so the poor are again left begging and helpless. According to one wise person, in this situation zakat becomes like the painkiller that gives relief to the helpless for a limited period of time, but it is not like the medicine that cures the illness for good.
Zakat should be used in the rehabilitation of the poor and helpless, not just to feed and clothe him for a short duration.
According to Imam Abu Haneefa, “The poor and helpless should be g...
: 01 June 2017
By H. Abdul Raqeeb
One fourth of India’s beggars are Muslims and out of these Muslims, there are more women than men. This sad truth became public on July 30, 2016 as the report of survey was published in media.
On December, 2014, Veernagar, Agra, came in the glare of media. Many poor Muslims, who were rag-pickers, rickshaw pullers or manual labourers from Bengal and Assam were lured into converting to Hinduism by some communal organizations. The poor Muslims were converted on the strength of money. The conversion was named ‘ghar-wapsi’.
Don’t these incidents prompt the general Muslim population of India to do something about their community and find a solution? At least 14.5% of Indian population is Muslim. But they form the poorest of the poor.
The report by...
: 29 May 2017
By Arno Maierbrugger Gulf Times Correspondent Bangkok
Islamic finance is increasingly being discovered as a vehicle to support sustainable development goals by investments in environmental projects, as well as to deal with challenges of poverty, social inequality and financial exclusion, a method called “impact investing.”
To that end, the Islamic Development Bank (IDB) and the Istanbul International Center for Private Sector in Development of the UN Development Programme launched the “Global Islamic Finance and Impact Investing Platform,” an institution which seeks to build collaborations between a multitude of stakeholders, including Islamic banks and Islamic finance institutions, that engage in developmental investments in accordance with the United Nation&rs...
: 24 May 2017
The interest money which is not claimed by people due to religious obligations is kept in suspended bank accounts.
The SBI has declined to share the quantum of money lying in suspended bank accounts in which the interest amount of customers, who do not claim it due to religious reasons, is kept. Replying to an RTI query, the State Bank of India (SBI) said it does not maintain such information in its database “in normal course of business and extraction of the same will be voluminous and time taking activity”.
“We, therefore, decline your application under Section 7 (9) of RTI Act as the information sought by you is likely to divert disproportionately the resources of the bank,” it said in reply to the application filed by PTI.
The section bars disc...
: 05 May 2017
By Syed Zahid Ahmad
The Indian Government can deny Islamic banking in India, but can’t keep ignoring the deprivation of the poor to access equities from formal sources like corporate avails from the stock market. To get rid of NPAs and be ready for Basel–III standards, Indian banks may need innovative investment products like Micro Equity.
It is often asked if countries like the UK, France and Switzerland can adopt Islamic banking, then why can’t India? One should not forget that India has had a history of communal violence since colonial days. Even after 70 years of independence Indian democracy is still polarised in the name of religion and castes; there are many pending communal issues in addition to those cropping up at the slightest provocations. Owing to th...
: 03 May 2017
The two main pillars of modern banking involve lending and borrowing of money on interest and fractional reserve system. On scrutinizing the laws of economic system of Islam both these two things are strictly prohibited. So an Islamic bank is supposed to function without involving interest and fractional reserve system. The various definitions of Islamic bank clearlily point out towards sharing of profit and loss and prohibition of interest. However the complex financial system of modern world requires a very comprehensive knowledge of the subject in order to isolate a non interest based transaction from an interest based transaction. Various services of Islamic banks involve a clear factor of interest although they justify it by quoting fatwas of Islamic scholars which h...
: 01 May 2017
By S M Wasiullah for Maeeshat
As a principle investment in equity shares is considered Shariah compliant, if the business of the company is per se permissible. Then, some companies could also have a minor or even insignificant part of their income coming from impermissible sources such as from associated or subsidiary activities which are impermissible. Combining both the above types of impermissible incomes, we have the concept of ‘impure income’.
For an equity investment to be Shariah compliant, such impure income needs to be purged (by donating it to charity) by a Shariah compliant investor. Generally however, the minor impermissible income – other than interest income – is usually not reported separately in company accounts and therefore it is not possible t...
: 28 April 2017
By Shaik Zakeer Hussain
Bengaluru: A new Shariah-compliant investment company called Mount Judi Ventures was launched in Bengaluru on Saturday, to fund seed stage, growth stage and established businesses, which are primarily based in India.
The company plans to soon float a SEBI registered Alternative Investment Fund (AIF-II) category venture capital fund, and targets to raise $10 to $15 million, with an expected annual return on investment of 18% for the fund.
An offshoot of Rehbar Financial Consultants, Mount Judi Ventures grew out of the need to finance large-scale investments, which the former could not support due to its mandate to fund only small- and medium-size businesses. Mount Judi will operate independently of Rehbar, its Co-founder and CEO Mudassar Ali Baig told The C...
: 11 April 2017
NEW DELHI: No deadline has been set for introduction of Sharia or interest-free banking in India, the Reserve Bank of India (RBI) has said.
Islamic or Sharia banking is a finance system based on the principles of not charging interest, which is prohibited under Islam.
The RBI had earlier proposed opening of "Islamic window" in conventional banks for gradual introduction of Sharia- compliant banking.
Responding to an RTI application, the RBI said it has not taken any step to introduce Islamic window in banks for gradual introduction of Sharia-compliant interest-free banking in India.
"RBI has not set any deadline for introduction of interest-free banking," the central bank said in response to the RTI query filed by PTI.
However, on the instruction of t...
: 09 April 2017
KUWAIT: Warba Bank, the best investment bank in Kuwait as well as the best corporate advisory, achieved international success in its maiden sukuk issuance exercise – the issuance of USD 250.0 million Tier 1 Mudaraba Capital Certificates. A one week marketing campaign succeeded in attracting investor interest worth approximately $1.3 billion from Kuwait, Dubai, Hong Kong, Singapore and London attaining an oversubscription of more than 5 times the sukuk issuance size. The bank’s CEO, Shaheen Hamad Al-Ghanem, said that Warba Bank’s success in attracting such diverse and deep investor interest reflected the confidence of the investment community in the bank’s performance and its future as crafted in its 2017-2021 Strategic Plan.
The callable $250.0 mil...
: 09 March 2017
KOCHI: Finance Minister Thomas Isaac had embraced Islamic Banking in a big way in his previous budget. But eight months later, the interest- free endeavour failed to find a place in his latest financial blueprint for the state. This has left the Cheraman Financial Services in dismay.
The Non- Banking Financial Company with equity participation of the Kerala State Industrial Development Corporation (KSIDC) is yet to play a major role as envisaged in the 2016 budget.
The firm also incurred a loss of Rs 56.44 lakh last year. “We expected the Finance Minister to deliver on the announcements about Shariah investment made in the previous budget,” said National Committee on Islamic Banking convener H Abdur Raqeeb.
“As a strong proponent of Islamic Banking, we believe h...
: 06 March 2017
CANT SHARE DETAILS OF GOVT RESPONSE ON SHARIA BANKING: RBI
New Delhi, Feb 27 (PTI) The response given by the Finance Ministry on an RBI report about the introduction of Sharia banking in India cannot be disclosed, the central bank has said.
The Reserve Bank of India (RBI) was asked to give the copy of the letter sent to it by the ministry on the recommendation of its Inter Departmental Group (IDG) regarding Islamic banking.
The central bank had sought response from the Department of Financial Services (DFS) under the finance minister whether their letter can be disclosed under the Right to Information (RTI) Act.
"In this regard we have been advised by the DFS, Government of India that the letter is exempt und...
: 27 February 2017