Biased bureaucracy biggest hurdle in introducing Islamic Banking: K Rahman Khan

By Rehan Ansari,,
Mumbai: In a frank admission, Rajya Sabha deputy chairman K Rahman Khan blamed the bureaucracy for their myopic approach for Introducing Islamic Banking in India. He was speaking in a seminar on Islamic Banking for Infrastructure Development organised by the Indo-Arab Chamber of Commerce and Industries here on Saturday.
“The high-profile committee on financial sector reforms, headed by International Monetary Fund former chief economist Raghuram Rajan recommended the introduction of Islamic Banking but the bureaucracy seems to be reluctant or having a bias approach towards Islamic Banking” K Rahman Khan said.

Dr. Shariq Nisar Speaking on the seminar on Islamic Finance
Mr Khan also appreciated the achievement of TASIS. He said, “A significant milestone for India in 2011 is the newly launched BSE TASIS Shairah 50, a share index of Shariah compliant companies by the BSE.”
He said, “This is an internationally significant event not only for its uniqueness, but also because of its great performance.”
“It’s not only Islamic countries but other secular, and plural society like USA, UK, Singapore even China have customized their rules to allow Islamic Banking and attract funds from 1.8 trillion dollar Industry which is growing at the rate of 15% to 30%” said, Dr. Sharique Nisar, Director TASIS.
Allowing Islamic banking will help generate funds not only from Oil rich Gulf Countries but from within India, said T Balakrishnan, retired additional chief secretary of Kerala.
Stating that “Kerala has 25% Muslim population but 75% of the bank deposits are held by Muslims who do not use interest because it’s prohibited in Islam therefore kept idle in the bank” claimed Balakrishnan, man behind Albarkah financial services promoted by the Kerala government.
Liyaqat Ali, Lawyer of Infrastructure development and Partner of Classis law said, “I have seen many Infrastructure projects getting delayed because of lack of funds and the cost of funds that is interest. If it can be financed on equity sharing basis based on Islamic principle then the Infrastructure project will get a boost up.”

L-R: Dr.Shariq Nisar, SS Husain, K. Rahman Khan, T Balakrishnan, Ishtiaq Ali
Sushil Jiwarajka, Chairman, Indo Arab Chamber of Commerce & Industry on the sideline of the meet said, “As a neutral body we like to initiate a debate in the country over Islamic finance to remove misunderstanding and misconceptions.”
He added, “India needs $ 3 Trillionfor its Infrastructure development and if we could get 30 per cent out of $1.8 trillion industry it will be a great achievement.”
He stressed the countrymen to understand Islamic banking in the right perspective and as an alternate banking.

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