WORKING HOURS

9:00am to 06:30pm

CALL US

+91 11 29945946

MAIL US

info@icif.in

DESPITE RBI’S DECISION, ISLAMIC BANKING WILL COME TO INDIA: ABDUR RAQEEB

New Delhi/ Mumbai: The Reserve Bank of India’s decision to scrap its plan to introduce shariah compliant Islamic banking in the country has come as a bolt from the blue for the 200 million strong Muslim populations in the country. Merely last year, the RBI had concluded that the Islamic banking will be a boon for the Indian economy in general and banking sector in the country in particular.

Now taking an about turn, the Reserve bank of India, the country’s central bank has said that implementation of the Islamic banking in the country may not be feasible. It also added that all the sections of the society are well integrated in the country’s banking system and thus there was no need for launching Shariah compliant banking in India, the second largest economy in Asia.

While responding to an RTI on when or whether the RBI will allow Islamic banking in the country, RBI said, “Taking into account the wider and equal opportunities available to all citizens to access banking and financial services, it has been decided not to pursue the proposal [to introduce Islamic banking] further”.

It should be kept in mind that the proposal to introduce Islamic banking was first made by a committee on financial sector reforms, chaired by former Reserve Bank of India Governor Raghuram Rajan, in 2008. “Certain faiths prohibit the use of financial instruments that pay interest,” the committee had said. “The non-availability of interest-free banking products results in some Indians, including those in the economically disadvantaged strata of society, not being able to access banking products and services due to reasons of faith.”

The latest decision of the RBI has disheartened the proponents of the Islamic banking in the country. H Abdur Raqeeb, the general secretary of the Indian Center of Islamic Finance told ViewsHeadlines that the RBI decision was unfortunate. He said that it was surprising that the Reserve Bank of India has to contradict what it has submitted to FinMin in two important reports

Abdur Raqeeb, went on to add, “It seems the political situation prevailing in the country is responsible to take this decision and sooner or later it has to review it’s stand and go for an alternative system of Finance & Banking as done in several secular modern and industrialised countries. If London, Hong Kong Tokyo can have it why not Mumba?”

When asked as to whether the decision reflects anti-Muslim bias of the current dispensation at the center, Abdur Raqeeb added that “both Govt and RBI should not see through religious angle but from a financial perspective”.

He said that his organization is working to remove misunderstanding that the Islamic finance was a Muslim specific thing. He said we are trying to “remove misunderstanding among general public that it is Muslim specific. It is beneficial to all people and we are citing example that in Malaysia customers and beneficiaries belong to all the communities. In shariah compliant Mutual funds like Tata ethical and taraurus Jain community is investing more like 50/percent”.

viewsheadlines.com/despite-rbis-decision-islamic-banking-will-come-to-india-abdur-raqeeb-18491/

Posted Date : 13 November 2017

News Updates

  • INT’L ZAKAT CONFERENCE KERALA CATERS HOPE FOR CREATIVE ZAKAT SYSTEM IN INDIA

    By HABEEB RAHMAN CP The International Zakat Conference, organised by Baithuzzakath Kerala, concludes in Cochin with the new hope for the effective zakat management in the country. More than 250 high-profile delegates from various parts of the country and other nations participated in the conference...

    Read More
  • ZAKAT THE SOURCE OF SOCIAL UPLIFTMENT AND ECONOMIC EMPOWERMENT

    Dr. Rahmatullah Abdul Ahad dwells upon how Zakat can be a source of social upliftment and economic empowerment. Poverty, which indicates the absence of material means, is rampant in all the states of India irrespective of caste and clan wise composition of the society. The consequence is sufferings...

    Read More
  • ISLAMIC BANKING IN J&K: HC GIVES FINANCE MINISTRY, RBI TWO MORE WEEKS TO RESPOND

    The Forum also seeks direction to the J&K Bank to take immediate steps for opening of Shariah-compliant windows to accomplish the objective of mass level participation in Shariah Banking. The High Court on Tuesday granted two more weeks to the Union Finance Ministry, Reserve Bank of Ind...

    Read More
  • Online admission for second batch of MBA Insurance 2018 - 2020 at Jamia Hamdard

    Online admission for second batch of MBA Insurance 2018 - 2020 at Jamia Hamdard, Deemed University, New Delhi has started. The link is https://admissions. jamiahamdard.edu This insurance course is being run by Jamia Hamdard in collaboration with Asean Institute of Insurance & Risk M...

    Read More
  • ISLAMIC FINANCE EMBRACING SMALL, MEDIUM ENTERPRISES

    There is an ongoing trend in countries with Islamic finance ecosystems of discovering the importance of small and medium enterprises (SMEs) for economic well-being and growth.  Traditionally, SMEs have not played a substantial role in oil-rich Middle Eastern countries where the economy used ...

    Read More
  • INDONESIA PRESIDENT OPTIMISTIC ON GROWTH OF FUNDS FOR MICRO WAKAF BANKS

    Banten, March 14 -- President Joko Widodo (Jokowi) is optimistic that several people would come forward to donate funds to micro 'wakaf' banks in Indonesia, thereby encouraging the development of the micro business sector. "We will push donors as much as possible. I am certain many people want...

    Read More
  • PIL PRAYS FOR ISLAMIC BANKING IN J&K

    High Court Issues Notices; Asks Union Finance Ministry, RBI, J&K Bank, J&K Government To Respond D A RASHID Srinagar, Publish Date: Mar 20 2018 The High Court on Monday asked Union Finance Ministry, Reserve Bank of India, Jammu and Kashmir Government and Jammu and Kashmir Bank to respond t...

    Read More