(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
THERE’S NO BANKING WITHOUT INTEREST
Indian Muslims, many of them small-scale entrepreneurs, will benefit from shedding their opposition to mainstream banking
Muslims in general avoid ‘banking’. The reason is that the institution of interest (‘riba’ in Arabic) is regarded as ignoble because the Holy Qur’an strictly prohibits interest-based transactions in all forms. But, in the modern economic and banking systems of all countries, interest has become completely institutionalised. The questions that arise are whether there is an independent Islamic economics, is it a discipline all its own, and is it in practice among Muslims.
Islamic economists argue that an independent Islamic economics has been defined in accordanc...
: 22 February 2017
RAPID ISLAMIC FINANCE GROWTH BRINGS CORE CHALLENGES TO MEET
The world's largest and most important markets for Islamic finance Malaysia, Indonesia, Saudi Arabia, Bahrain, Qatar, UAE, Kuwait, Pakistan and Turkey are expected to grow their combined assets to no less than 1,757bn, almost double the volume they had at the end of 2015, according to consultancy EY.
This rapid growth is driven by 'significant unmet demand, says Abdulaziz al-Sowailim, chairman and CEO of EY's Mena unit, adding that 'despite the prevailing macroeconomic and political situation across a number of emerging markets, forward-looking industry projections remain generally positive.
The industry is shaped by economic growth in emerging markets with Muslim majority such as in Southeast Asia, where the A...
: 20 February 2017
3 BUSINESS PRINCIPLES OF ABDUL RAHMAN IBN AWF WHICH EARNED HIM 13,545 TONS OF GOLD
Most of us consider that a huge amount of money, as well as a highly equipped best team of experts or professionals, is necessary to start a business. But according to historiographer and modern scholars to start any business the only thing required is passion and skills. According to many scholars, the significance and the depth of the word Tajir are more than the word Entrepreneur so it is better to use the word Tajir because the word is not limited in its value system. The first rule of business is to practice this essential principle: The belief that Allah will give you the best if you put in the work. Success and achievements in business come to those who have a clear vision of their d...
: 18 February 2017
CHINA-PAKISTAN-ECONOMIC-CORRIDOR (CPEC) AND ISLAMIC FINANCE
A Unmissable opportunity for Sukuk issuance
The China-Pakistan Economic corridor (CPEC), also known as One-Belt-One-Road (OBOR) is being referred to as the game-changer. About year and a half ago, I researched it and wrote about it in ‘Greater Kashmir’. The way things have unfurled in CPEC hitherto makes me reiterate even more confidently what I predicted then. This project covers 60 countries and 27 of them are Muslim nations. It reduces the distance of Western China to Europe by 5000kms, which roughly translates to 45 shipping days. Those who know international business can gauge the significance of 45 days. The $54 billion dollar investment is being spent to come up with the new roads, renovate and broaden ...
: 15 February 2017
FINANCE MINISTER THOMAS ISAAC TO POOL RS 10,000 CRORE OFF BUDGET
THIRUVANANTHAPURAM: On July 8, when Finance Minister Dr T.M. Thomas Isaac presents his ‘Alteration Memorandum,’ he is expected to target an off-budget capital infusion of Rs 10,000 crore for the 2016-17 fiscal. To achieve this, Dr Isaac will bank on two unique instruments: one, a special purpose vehicle to bring in funds for infrastructure development, and the other, an ‘Islamic bank’ to get funds locked up in the Gulf for big projects that further a social cause.
The SPV, which will do the borrowing for the government, will be created out of autonomous bodies like Road Fund Board or Roads and Bridges Corporation. But first, Dr Isaac will restructure these companies and an ...
: 14 February 2017
Why Islamic Banking is said to be irrelevant for India?
Syed Zahid Ahmad
Srinagar, Publish Date: Feb 9 2017
In 2006 the RBI’s Working Group to examine the financial products used in Islamic banking stated that ‘as distinct from modern, conventional banking, Islamic banking due to its inextricable influence of religious doctrines has often evoked a sense of mysticism and curiosity’. RBI officials despite being financial professionals took ten years to apprehend and make recommendation about Islamic banking windows. Besides Deepak Mohanty Committee and Inter Departmental Group, the Central Board of RBI was also convinced that Islamic banking would be helpful for financial inclusion in India. But the way State Finance Min...
: 09 February 2017