RBI should Re-examine Stand on Islamic Finance: H Abdur Raqeeb

In a major attempt to showcase the non-inclusion of marginalised and minorities in the banking and other financial services and also to focus the need and relevance of Islamic Finance, General secretary of Indian Centre for Islamic Finance-ICIF,

Written by

ALI JASIM

Published on

August 22, 2022

In a major attempt to showcase the non-inclusion of marginalised and minorities in the banking and other financial services and also to focus the need and relevance of Islamic Finance, General secretary of Indian Centre for Islamic Finance-ICIF, Mr H Abdur Raqeeb, underlined the need of introduction of interest-free banking in India, while participating in ‘Inclusion thought Leadership Conclave” of ‘Reaching banking and other Financial services for Minorities in the 26th Skoch Summit.

The conclave titled Swabhiman- The first step towards making inclusive growth a reality, which is the 26th Skoch summit, took place at Hyatt Regency, Mumbai on June 2-3, 2011. The Conclave was chaired by Mr Wajahat Habibullah, Chairperson, National Commission for Minorities who brilliantly pointed out the relevance of “Interest-free banking in India”

Among the Knowledge Partners of the Summit and the conclave were Planning Commission of India, several union ministries like Panchayat Raj, Urban Development, Unique Identification Authority, Corporation Bank, IOB, IFFCO and many well known Corporate Houses.

One of the highlights of the summit was Panel discussion on the Book: Growth & Finance – Essays in Honour of Dr C Rangarajan, Chairman Economic Advisory Council to the Prime Minister

The Panellists in the conclave include Fr. Eliar Gonsalves, Director, CSA, Mr Safdar Khan, Chairperson, Delhi State Minorities Commission, Dr Smita Premchandar, Secretary, Sampark, MS Shashi Singh, Chairperson, Consortium of Women Entrepreneurs of India, Syed Zahid Ahmed of AICMEU, Dr Shariq Nisar and Mr MH Khatkatay of TASIS also participated.

In the Thought Leadership Presentation, Mr Raqeeb concluded that it is the need of the hour that for inclusion of the marginalised and minorities, following to be undertaken immediately:

  • RBI should re-examine stand on Islamic Finance and modify the regulations to accommodate Islamic Banking/Islamic Windows as per the recommendation of Raghuram Rajan Committee Report.
  • IRDA should permit Takaful (mutual insurance).
  • SEBI needs to draw up micro-venture capital guidelines to permit investment in partnerships/LLPs.
  • The Government should form an Expert Group on Islamic Finance (EGIF) as in UK from industry, citizens, professionals, representatives from marginalised and Muslim organisations.

This is the first time, in a mainstream summit of Skoch stature, the issues of financial inclusion of minorities were discussed in the highest level and it is expected that the same will create a positive impact on the regulators to move forward in this direction of inclusive growth for all.

Earlier, a delegation of Indian Centre of Islamic Finance-ICIF consisting of Mr. Khurshid Najmi of  Indian Law Services and formerly of Joint Legal Advisor, RBI  along with Mr. H Abdur Raqeeb, called on Mr Wajahat Habibullah, and appraised him about Sachar Report and Raghuram Rajan Committee of the Planning Commission along with Kerala High Court Judgment on Islamic Finance & Banking  as well as crores of interest money of minorities particularly Muslims lying idle in the banks and urged him to take up the matter with the authorities. Mrs Syeda Bilgrami Imam, member of the Commission was also present.