Islamic Banking

Mumbai; A two-day national workshop on the Roadmap for Islamic Banking in India was held by Jamaat-e-Islami Hind, a leading Muslim organization of India, on 16-17 Sept 2006 at Mumbai. Various International and national finance experts, professionals and bankers discussed diverse aspects to implement Islamic Banking in India and jointly drafted a resolution.

At the workshop several panels were formed, under experts’ guidance to study on micro and macro levels on the Roadmap to Islamic Banking in India.

Under Dr. Ausaf Ahmed’s supervision a panel concluded that "Islamic banking is the greatest need of the hour and valid for all centuries because it promotes justice and equity among human beings. It encourages the participation of all communities in profit and loss of economy. It also generates employment in finance sector and benefits global economy." Another panel analysed the Steps to develop Islamic Banking in India and stated that; "few working groups need to be established to work on mobilizing public opinion and regulatory amendment for Islamic Banking. Political will to be developed. To be collaborated with HSBC and City banks for opening Interest Free or Islamic Banking Windows/ products and to promote more cooperative societies."

Discussing on Success and Sustainability of Islamic Banking the panel said that, "The professional expertise and entrepreneurial skills of the population need to be developed so as to cultivate abilities to run and manage financial institutions in a professional manner. To ensure involvement of each and every section of the country."

Exploring the Possibilities of Islamic Banking in existing Indian legal framework and the panel depicted that, "Existing framework does not permit Islamic Banking. Only selective activities like equity investment is possible while trade finance aspects like taking title to goods is not possible. A lot of amendments need to be carried out in existing legal framework. Appropriate models to be selected and implemented to suit society’s diverse financial needs. Islamic Bank of Britain, Islamic banks of Thailand, Singapore and USA may be glaring models for Indian Bankers. The reputed domestic and international banks may be involved in the process of determining and implementing Islamic Banking products to the extent possible in India under the current regulatory framework." Renowned international Islamic finance expert and Shah Faisal awardees scholar Dr. Najatullah Siddiqi and Mufti Barkatullah (Shariyah advisor of Lloyd Bank and Islamic Banking, Britain), Mr. Mohammed Talha (First manager Qatar International Islamic Bank, QIIB), Mr. Nizar Kochery (Legal advisor & President Middle East Indian Management Association, Qatar ) these leading international finance personalities were the part of this historical workshop.

Well-known finance expert and Islamic economist Dr. Fazlur Rahman Faridi was the chief patron, Dr. Rahmatullah (AICMEU ) was the organiser and Jamaat-e-Islami Hind’s media secretary and Tamil Nadu state president H. Abdur Raqeeb was the convener of the workshop.

Dr. Ausaf Ahmed (Islamic Development Bank, Saudi Arabia) , Dr. M. I. Bagsiraj and Dr. Shariq Nisar, Dr. Abdus Salam (Retired manager RBI, Cochin ), Dr. M Y Khan (SEBI ), Mr. Ashraf Ab. Haq Mohamadey (IDAFA Investment Pvt. Ltd.), Mr. I.H.Zaki, Mr. Anwar Batki (Ex-Legal Advisor, RBI) , Mr. Zahooruddin (Hyderabad), Mr. K.K. Ali (Alternate Investment & credit Ltd. Cochin), Mr. Maqbool Ahmed (Bengalore) have attended the workshop.

The participants unanimously concluded that, "Islamic Banking can play pivotal role to facilitate growth with equity and to attract foreign investment, especially Petrodollars which are moving very fast from the developed countries to the emerging markets after 9/11. ‘Development with human face’ the agenda of UPA Government may definitely be fulfilled by Islamic banking. So we appeal the government to accommodate Islamic Banking in the Banking Regulation Act."

Contact for further information: H. Abdur Raqeeb, Convenor Islamic Banking Workshop : 0944407550301, abdraqeeb_h@yahoo.com