Friday, September 5, 2008

Amar Singh to meet PM, FM for regularizing Islamic Banking in India

Indian Centre for Islamic Finance

D-317, Abul Fazl Enclave, Jamia Nagar, Okhla, New Delhi-110025
Phone: 011- 011-26951409/ 011-26948341.

Amar Singh to meet PM, FM for regularizing Islamic Banking in India

1st Sept 2008

New Delhi: As trillions of petrodollars are ready to be invested in India but an RBI's regulation has to be amended to accommodate Islamic (interest-free) banking and Islamic finance in India.

Prominent leader of Samajwadi Party Amar Singh has vowed to make pressure on the government to introduce Islamic banking in India. "When numbers of European countries like UK and Japan have already amended their regulations to accommodate Islamic Banking, so why shouldn't India? I will meet Prime Minister and Finance Minister for making such act in our system to establish Islamic windows and Islamic Banking," he vowed in a meeting of Islamic banking experts, ex-RBI officials and community leaders. The meeting was organised by a newly formed Islamic finance body – Indian Centre for Islamic Finance (ICIF).

Mr Abdur Raqeeb, Convenor of ICIF, briefing the topic of the discussion 'Road to Islamic banking in India' said, "Islamic banks are functioning in developed secular countries like UK, Singapore, Japan Thailand and Hong Kong. Even Singapore is providing 5% confessional income form Islamic investments and wealth management, and Thailand a Buddhists majority country running an Islamic Bank under Finance Minister and China opening Islamic index in Hong Kong while India with production base and high growth rate is looked as the destination of financers from abroad, particularly trillions of petrodollars from oil rich Gulf countries, so this Islamic banking should be opened in India too."

He explained, "Islamic banking is not Muslim specific, it is equally beneficial for all especially poor and downtrodden peoples. 40% of customers of Islamic Bank in Malaysia are non-Muslims mostly Chinese." He informed, "Islamic Sukuk (Islamic Bonds) of billions of dollars is emerging as a solution to sub-prime mortgage crises of the world." He called upon the government to amend the RBI regulation and allow Islamic Banking in India.

Report for Publication

(H. Abdur Raqeeb)
Convenor, ICIF, New Delhi