Islamic Banking system can be introduced in India without any amendments in the Banking Regulation Act of India, 1949,” said Abdul Hasib, former Director, Reserve Bank of India. The Islamic Banking system will be helpful for underprivileged and marginalised people, he added.
He was addressing a seminar on Global Financial Crisis and Islamic Economic System organised by Jamaat-e-Islami Hind in Mumbai last week. Advocating for introduction of Islami Banking in the country, Abdul Hasib said the high profile Raghuram Rajan Committee on Financial Sector reforms in India has advocated the introduction of Islamic banking in India. He also differentiated between Islamic financial system and interest-free banking and said that many other countries have started Interest-Free banking.
While the world is facing the severest Financial Crisis in the new century there is an exception to it. Islamic banking and financial system has largely been unaffected and more so proved to be resilient because it is transparent, ethical and based on sharing and caring, observed Abdur Raqeeb, convenor, National Committee on Islamic Banking. While France, Japan, UK and other countries have opened the door for this Multi Billion dollar business, India should not distance itself, he urged. He also shunned the misconception that Islamic financial system is for Muslims only. He said it is for all human beings. It makes sure that the monitory resources do not remain among few rich but revolves in the whole society.
Interest and no transparency are the basic factors of deepening financial crisis where billions of dollars were lost, Dr. Sharique Nisar, an Economist and expert in Islamic Banking explained. He also explained different Islamic Financial Products prevailing in the world like, Musharakah (Participation), Mudarabha (speculation), Qard-e Hasna (Interest-Free Loan), Ijara (Leasing). He urged, “People must be taught about this alternative financial system, which is just and fair and general awareness must be created.”
Maulana Riyaz Ahmed Khan, Vice President Jamaat-e-Islami, Hind, Maharashtra, concluded, “The current financial system has resulted the accumulation of the Financial resources into the 20 per cent of the population and majority is fighting for only 20 per cent of the wealth.” He also added, “Islamic financial system is aimed at reversing the scene and aimed at the welfare of the society and not of the rich.”
Dr. Rahmatullah, an economist, and JF Patil, Head of Economic Department, Kolhapur University also addressed the gathering.