Interest-free banking inevitable for India – Justice V.R. Krishna Iyer
Memorandum to the Prime Minister released
Kochi, 06.08.2014: International Interfaith Dialogue India is an organization which was founded in 2010 at New Delhi with the sacred intention of promoting righteousness and human values in the society through communal harmony and cooperation, sanctifying all the eternal values found in the universe. A memorandum pointing out the significance of respecting the plurality and diversity of India and also of establishing social justice by equitable distribution of wealth and resources was handed over to Prof. M.K.Sanu by Justice V.R. Krishna Iyer (Chief Patron of IIDI) at his residence on 6-8-2014 at 3.30 pm. The Memorandum plead the government to attach the highest priority for the great dream of a sustainable development to the entire nation, maintaining the communal harmony and peace, proving that our nation is the best in the world in respecting human values and sustainable developments. Further it pleads to allow the interest free banking system based on the following facts:
Interest-free Banking & Finance has functioning models in more than 70 countries around the globe. Many Western banks have opened Participatory banking windows and they cater to the needs of all faith communities. Their success has prompted even the Government of India to consider approval of Interest-free Finance as one among the solutions to present day problems faced by the Indian economy. (Ref: Raghuram Rajan Committee Report). The fundamental objective of the interest-free banking system is to eliminate exploitation of borrowers. It considers lending as an investment and distributes investment risk between the users and suppliers of funds. It has been proven that the interest-free banking shall be a vital tool to achieve the following:
1. Development and growth of the Indian banking sector
2. Foreign participation in large-scale infrastructure projects
3. Move into the league of major financial centers of the world
4. Active participation of some 20 percent Indian citizens living in the country and abroad in banking and financial activities
5. Ethical financing based on sharing approach, which will help uplift the poor and boost SMEs
7. Realization of an immense underlying potential for growth and profitability through banking services for more than 20 crores of Indians.
N.M.Sherafuddin (Gen.Secretary), Fr.Albert Nambiaparambil (Executive Committee member), Justice. P.K.Shamsuddin (Patron), Bishop Jacob Mannaraprayil (Executive Committee member), Fr.Dr.Vincent Kundukulam (Executive Committee member), Adv. K.P. Haridas, M.N.Giri, Swami Puranthrantha, Fr. Jose Pariaramparambil, Abdul Azeez Valiyaveettil were take part on the occasion.