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Banking on Faith: Islamic (Sharia) Banking and its Prospects in India

with 3 comments

Points of Essence:

  • India is eyeing a stake in the booming Islamic banking industry with its proposed implementation being assessed with great interest by the Indian policymakers. But they have to substantially modify the legal framework which governs the Indian banking system prior to offering Islamic banking financial services in the country.
  • Under the current Indian banking laws, it is almost impossible for Islamic banking to be carried out in India due to the mandatory requirement for interest payments on deposits. The concept of profit-loss sharing or partnership is alien to the conventional banking framework of India and thus not allowed under the law. The tax treatment of Islamic finance products, unless reviewed, would be the biggest hindrance to the implementation of Islamic banking in India.

By Priyanka Lal and Sneha Snehal

In this era where trends flourish around increasing aspirations to identify with social conscious initiatives, it comes as no surprise that Islamic Banking is booming. The concept of interest is fundamental to the business of banking. With this background it is very interesting that sharia[1] banking is working without profits and is still flourishing. They are not only profitable but are also growing at an astonishing rate in sense of capital, assets and consumers. From Jakarta to Jeddah to Jordan, 280 Islamic banks operate in over 50 countries, with assets estimated between $ 250 million and $ 300 billion.[2] Management Consultants Mckinsey and Co. say in their world Islamic Competitiveness Report, 2007 that the value of assets managed by Islamic Banks will grow by 33 % by 2010.[3]

Keeping all this as background this article explores Islamic Banking in totality: origin, principles, growths and future and the possibility of the same in India.

Historical Development

It seems that the history of Islamic banking could be divided into two parts. The earliest references to the organization of banking on the basis of profit sharing rather than interest (Fiqh al-Muamalat-the fundamental principal of Islamic Banking) can be traced to the late forties.[4] However In the next two decades it attracted more attention, partly because of the political interest that it created in Pakistan and partly because of the migration of muslims to the western countries. The Islamic Development Bank, an inter-governmental bank established in 1975, was born of this process, being the first bank incorporating the principles of sharia banking.[5] The first private interest-free bank, the Dubai Islamic Bank, was also set up in 1975 by a group of Muslim businessmen from several countries. Two more private banks were founded in 1977 under the name of Faisal Islamic Bank in Egypt and the Sudan. In the same year the Kuwaiti government set up the Kuwait Finance House. In the ten years since the establishment of the first private commercial bank in Dubai, more than 50 interest-free banks have come into being. Though quite a few of them are in Muslim countries, there are now spreading in other countries as well like in Denmark, Luxembourg, Switzerland and the UK.

In most countries the establishment of interest-free banking has been by private initiative (mostly by migrant muslims). In Iran and Pakistan, however, it was by government initiative and covered all banks in the country.

Fundamentals of Islamic Banking

All interest-free banks agree on the same basic principles. However, individual banks differ in their application. These differences can be because of several reasons including the laws of the country, objectives of the different banks, individual banks circumstances and experiences, the need to interact with other interest-based banks, etc.

Some of the essential principles which are followed by all the banks practicing sharia banking are:[6]

Deposit accounts

All the Islamic banks have three kinds of deposit accounts: current, savings and investment.

Current accounts

Current or demand deposit accounts are virtually the same as in all conventional banks. Deposit is guaranteed.

Savings accounts

Savings deposit accounts operate in different ways. In some banks, the depositors allow the banks to use their money but they obtain a guarantee of getting the full amount back from the bank. Banks adopt several methods of inducing their clients to deposit with them, but no profit is promised. In others, savings accounts are treated as investment accounts but with less stringent conditions as to withdrawals and minimum balance. Capital is not guaranteed but the banks take care to invest money from such accounts in relatively risk-free short-term projects. As such lower profit rates are expected and that too only on a portion of the average minimum balance on the ground that a high level of reserves needs to be kept at all times to meet withdrawal demands.

Investment account

Investment deposits are accepted for a fixed or unlimited period of time and the investors agree in advance to share the profit (or loss) in a given proportion with the bank. Capital is not guaranteed.

Modes of financing

Banks adopt several modes of acquiring assets or financing projects. But they can be broadly categorised into three areas: investment, trade and lending.

Investment financing

This is done in three main ways:

a)   Musharaka where a bank may join another entity to set up a joint venture, both parties participating in the various aspects of the project in varying degrees. Profit and loss are shared in a pre-arranged fashion. This is not very different from the joint venture concept. The venture is an independent legal entity and the bank may withdraw gradually after an initial period;

b)  Mudarabha where the bank contributes the finance and the client provides the expertise, management and labour. Profits are shared by both the partners in a pre-arranged proportion, but when a loss occurs the total loss is borne by the bank; and

c)   Financing on the basis of an estimated rate of return. Under this scheme, the bank estimates the expected rate of return on the specific project it is asked to finance and provides financing on the understanding that at least that rate is payable to the bank. If the project ends up in a profit more than the estimated rate the excess goes to the client. If the profit is less than the estimate the bank will accept the lower rate. In case a loss is suffered the bank will take a share in it.

Trade financing

This is also done in several ways. The main ones are:

a)  Mark-up where the bank buys an item for a client and the client agrees to repay the bank the price and an agreed profit later on;

b)   Leasing where the bank buys an item for a client and leases it to him for an agreed period and at the end of that period the lessee pays the balance on the price agreed at the beginning an becomes the owner of the item;

c)  Hire-purchase where the bank buys an item for the client and hires it to him for an agreed rent and period, and at the end of that period the client automatically becomes the owner of the item;

d)   Sell-and-buy-back where a client sells one of his properties to the bank for an agreed price payable now on condition that he will buy the property back after certain time for an agreed price; and

e)  Letters of credit where the bank guarantees the import of an item using its own funds for a client, on the basis of sharing the profit from the sale of this item or on a mark-up basis.


Main forms of Lending are:

a)  Loans with a service charge where the bank lends money without interest but they cover their expenses by levying a service charge. This charge may be subject to a maximum set by the authorities.

b)  No-cost loans where each bank is expected to set aside a part of their funds to grant no-cost loans to needy persons such as small farmers, entrepreneurs, producers, etc. and to needy consumers.

c)   Overdrafts also are to be provided, subject to a certain maximum, free of charge.


Other banking services such as money transfers, bill collections, trade in foreign currencies at spot rate etc. where the banks own money is not involved are provided on a commission or charges basis.

Prohibited lending

Islamic Banking other than dealing with interest also prohibits any dealing in pork, pornography, and anything else which the sharia deems haram.

Feasibility of Islamic banking in India

Current status of Islamic Banking in India

Islamic banks in India do not function under banking regulations. They are licensed under Non Banking Finance Companies Reserve Bank Directives 1997 RBI (Amendment) Act 1997, and operate on profit and loss based on Islamic principles. All the Islamic banks have to be compulsorily registered with RBI.

Reasons for non implementation of Islamic Banking in India

In the straitjacket world of Indian banking, something as fascinating as Islamic banking is a distant dream. Nonetheless, countless advocates of Islamic banking have been trying their best over the years to propagate the concept. In furtherance of this propagation the Reserve Bank of India (RBI) constituted a committee in 2007[7] to examine the issue but viewed that Islamic banking cannot be offered by banks in India as well as the overseas branches of local banks under the present legal framework. Except a basic offering like current account, almost no other banking product in India can be modified to meet the conditions of Islamic banking. As a genre of financial services, Islamic banking shuns the very idea of interest rates, and rests on profit-sharing principles. Based on the Sharia”h law, it abhors the business of making money out of money, upholding the belief that wealth is generated through actual trade and investment.[8] The RBI has not put the report in the public domain.[9]

While the final form of the report is not known, from the newspaper reports it can be collected that  the members had pointed out how Indian banking laws come in the way of various Islamic banking principles. These are as follows:

1.  n Al Wadiah (for saving bank account): Section 21 of the Banking Regulation Act (BR Act) requires payment of interest on such deposits; thus, interest-free deposit and a simple charging of premium or Hiba is not permissible.

2.   Mudarabah (for term deposit or investment): Here again, Section 21 of the BR Act disallows such products where the bank can invest the money in equity funds (in India, equity exposure is determined by a separate set of rules), and the client has complete freedom in the management.

3.  Mudarabah, Musharakah (for project finance and SME credit): Sections 5, 6 of the BR Act indicate the forms of business a banking company can undertake, and does not allow any kind of profit-sharing and partnership contract the basis of Islamic banking.

4.  Ijarah (for home finance) : As against Islamic banking where the banks owns the asset and hold the title, Section 9 of the BR Act prevents the bank from any sort of immovable property other than private use.

5.  Istisna (leasing, buyback): Besides the usual curbs on acquiring immovable property, offering Islamic banking products many not are bankable due to stamp duty, central sales tax and state tax laws that will apply depending on the nature of the transfer.

The BR Act even disallows an Indian bank from floating a subsidiary abroad to launch such products, or offering these through a special window. Thus, the upshot of the findings is that such banking experiment is impossible without a new law or multiple amendments to the BR Act.

Another important consideration is the tax procedures. While interest is a passive income, profit is defiantly an earned income which is treated differently. If principles of Islamic banking are incorporated then how does it comply with the tax procedure is the moot question. Furthermore RBI cannot act as the lender to such banks because such accommodation by the monetary authority is also interest based. Islamic banks cannot interact with conventional banks based on principles of interest.


Though it can be concluded that as of now RBI has stopped all the possibility of Islamic banking in India (other than NBFCs), there are certain questions which remain unanswered. The RBI report has not been made available on the public domain like other reports is definitely one question waiting to be answered. If the international banks[10] have established Islamic merged it with their object of profit making why can the same be done in India also is not answered. Keeping in mind the flourishment of Islamic Banking all over the world and the muslim population in India these are the questions which have to be answered immediately and with certainty.

(The authors are fourth year students of Hidayatullah National Law University, Raipur)

[1] Both Islamic and sharia banking mean the same and would be used interchangeably throughout this article



[4] One in Malaysia in the mid-forties and another in Pakistan in the late-fifties. Both did not survive


[6] Supra note 2 and also see

[7] Reserve Bank of India to set up a committee headed by Mr Anand Sinha, chief general Manager in-charge, department of banking operations & development to look into the matter and the committee submitted the report.


[9] The newspapers state that it might be because of the sensitive issues it was dealing with.

[10] Giant Western banks or, rather, their Islamic subsidiaries are leading the market for financing that complies with Qur”anic laws forbidding lending money for profit, or sponsoring un-Islamic activities such as gambling or smoking. Citigroup”s Bahrain-based Citi Islamic subsidiary was first into the market in 1996, and now leads the pack with deposits of more than $6 billion. Citi and at least 10 other Western majors dwarf the biggest locally owned rival, Al Baraka of Bahrain, worth a little more than half a billion.


Written by Suapi Shaffaii

September 10, 2008 at 11:16 am

Posted in Articles

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3 Responses

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  1. Economics of Islamic Banking in India
    Syed Zahid Ahmad

    With Indian Muslims have rather suppressed desire to have Islamic Banking in India, some of our vocal financial sector players and political leaders are suggesting that besides considering the religious, social, political and diplomatic dimensions, we should understand the economics of Islamic banking for Indian economy.

    Financial Sector Reforms and Islamic Banking:
    Though the draft report was silent about Islamic Banking, it is expected that the final report by the Committee on Financial Sector Reforms (CFSR) will add brief note about Islamic banking because the issue was raised during the seminar at Mumbai on 12th June 2008 where the committee members assured to consider it in the final report. The recent growth trend of Islamic investment funds worldwide has made some financial sector players feel that it was like a lost wisdom to miss Islamic banking so far which has some post modern financial products / services. There may be bureaucratic resistance to Islamic banking as there was to economic reforms and privatization in the early 1980s. India may now miss the Islamic banking as its missed Globalization bus in the eighties and Asian Tigers including China superseded it. Recently Zee news and the statesman have published projecting high potentials for Islamic banking in India. And latest with statement of Mr. Amar Singh (Samajwadi Party) on 1st September 2008 to pitch for Islamic banking, this issue has got some more attention in India. So, before it become a political agenda, it is better to evaluate its economic value for India.

    Silver Lining for Islamic Banking in India:
    In recent years the Islamic Investment business is gaining considerable grounds and companies like McKinsey & Company Inc. and Bearys Group are already dealing big businesses through Shariah Investments funds. East wind launched Islamic Index; and Reliance Money and Religare have launched Shariah Complaint Portfolio Management Services. As a result Indian Stock market is also observing some better trends in Shariah complaint stocks. With increased market of Shariah investments world wide, if China is going for Islamic banking to attract Islamic Investment Funds, why India should not allow Islamic banking with 150 millions Muslim who may help us pool around one trillion dollars Islamic investment funds from Gulf countries that too on equity base which keep our national current account and fiscal deficit under control. The experience of Islamic banks of Malaysia and Britain may be interesting; as in Malaysia, the Chinese businessmen are the biggest customers of Islamic banking, in Britain also, Islamic banks are not for Muslims alone. Similarly Islamic Bank in India will not stand for Muslims alone but for all poor Indians especially engaged in the unorganized sector.

    Facts and fictions about Islamic banking in India:
    It is unfortunate that our financial sector regulators, bankers and professional have failed to see the prospects of Islamic Banking in India, that’s why RBI or any other committee have yet to visualize the scope of Islamic banking in India. So far Islamic banking has been considered as a mere religious matter for Indian Muslims and thus it is not allowed with a fear of financial segregation, a threat of parallel banking system for RBI along with any hidden fear for SCBs to loose Muslim depositors. There has never been any public committee analyzing the impact of Islamic banking in India because Muslims of India were never so evocative about features of Islamic banking in India while the other community members had no background to conceive this concept to required level for projecting its utility for Indian economy. Off Course the concept of Islamic banking is driven by ethics of Islam, but it has more economic utility compared to its religious vigour which needs some genuine study by professionals having basic knowledge of Islamic banking and expertise on Indian economy because Islamic banking carries more advantageous features to boost real sector economy compared to financial sector. It is a need of the hour that Indian government should constitute a committee on public domain to study and analyze the economic significances of Islamic banking for the Indian economy.

    Economic analysis of Islamic Banking in India:
    Islamic banking may not be allowed just for a community as a religion based banking business, but it should be allowed after thorough study of its potential to resolve our real economic problems. The report by Sinha Committee was incomplete and thereafter still we have to find any report on economic viability of Islamic banking and its impact on inclusive growth. We have to remove the prejudices about Islamic banking and need to study it as a core economic issue irrespective of its base driven form Islam.

    Future leaders of Islamic banking in India:
    There might be a prejudice among top bankers that since Islamic banking originates from Islam, Muslims might take a lead in Islamic banking and their supremacy in banking sector may not be sure after Islamic banking. However the reality may be far different from the fiction. Indian Muslims are hardly capable to hold major shares of Islamic banking business in India as they lack required infrastructure, financial depth, banking creditability to attract the general depositors and investors under Islamic Banking. Islamic banking is not a children’s game. It requires even better professional expertise compared to conventional banking because it deals more with commercial projects than mere monetary credit and debit transactions. Indian Muslims may feel privileged in terms of Islamic ethics required for Islamic banking but they certainly lack professional efficiency to manage modern commercial banking on Islamic ethics. Our leading nationalized bank (SBI) is somehow reaching to that expertise which may be required to manage a complex banking project such as Islamic banking, but they have to hire services of experts on ‘Islamic Banking’. The RBI code of conduct to SCBs putting thrust on SMEs is reflecting the need of advanced commercial banking in India which would be focus under Islamic Banking. The performance by SBI has been best among nationalized banks to lend commercial credits. But still majority of unorganized sector workers who are non-bankable due to collateral problems are actually needing equity finance instead of debt finance. All the difference among nationalized bank’s operation and Islamic banking is the mechanism of credit and deposits. Under Islamic banking mechanism thrust would be on equity deposits and credits while interest charged would be replaced by profit margins on commercial credits and interest expended over deposits would be replaced by dividend on equity finance with deposits mobilized as equity deposits by banks.

    It is expected that with introduction of Islamic banking in India, the first choice of depositors and investors would be nationalized banks as despite contradiction of interest, Indian Muslims have a confidence in nationalized banks. To ensure security of deposits majority of Muslims depositors would prefer to join Islamic banking managed by nationalized banks. However it is expected that Foreign Investors looking to invest in India through Islamic banking, would prefer to have services of foreign banks. As far Indian Muslims are concerned, they have to make hard efforts to find their place in managing Islamic banking in India because they lack required financial depth; infrastructure and more importantly they have poor credibility among the depositors and investors due to some past failures of financial institutions.

    Beside to take political, social, religious and diplomatic advantages, Islamic banking is more desired for Inclusive growth of India. It is all important to evaluate probable impact of Islamic banking in different segments of Indian economy. Every segment is expected to enjoy its benefits.

    • The 150 millions Indian Muslims would enjoy their religious rights in banking sector with provision to get rid of interest which is strictly prohibited in Islam.
    • With introduction of Islamic banking, the UPA government may get advantage to please the second largest community of India who are somehow uncomfortable with linking of recent terrorist attacks with only Muslim community or in other words by hearing the terminology of Islamic terrorism.
    • With introduction of Islamic banking, Indian government will gain diplomatic advantages to make financial dealings with Muslim dominated nations especially to attract trillion dollars of equity finance from gulf countries.
    • The operation of Islamic banking will allow the Muslims to work with majority community in banking sector which is not found in proportion to their population share so far, because RBI has just 0.78% Muslims and SCBs have just 2.2% Muslim employees. Similarly Muslims have a poor employment rate in NABARD and SIDBI because every where financial institutions are dealing with interest and Muslims do not like to work with interest based banking and financial institutions. It is a major factor causing financial exclusion of Indian Muslims. With Islamic banking this exclusion may be removed and it would definitely help us build civil society economy.

    Islamic Banking is rated as one of the urgent needs of Indian economy as it is the only banking mechanism which seems to arrest the liquidity and inflation problem along with allowing GDP growth with adequate share in all segments. The increased percentage share in GDP by agriculture or manufacturing industry, or per capita income growth is just not indicative of true inclusive growth. For real inclusive growth, we have to ensure increase in income and employment status of workers at all segments. Empirical evidences reflects that though India has registered better growth rate in recent years, the number of poor living below poverty line has increased in our country. It may be noted that the household consumption is directly related to household income which has declined in recent years; while corporate savings are directly related to income of corporate sector which has increased. Thus we may conclude that with better GDP growth rate in recent years, our corporate sector has snatched the fruits of growth, while majority of work force have failed to enjoy the fruits of development.

    Similarly if we analyze the share of financial sector in GDP growth, we may find that in recent years the growth rate of financial sector has been better which indicate that share of deposits and credits to GDP has increased. Since our SCBs extend debt finance, these credits put interest cost as part of GDP cost which causes inflation. While under equity finance since the credit cost is zero, the growth of credit share to GDP cannot add cost of GDP thus cannot create inflation. On the contrary the dividend shared by depositors on equity finance help equitable distribution of income generated through financial sector, thus instead of concentration of credit to corporate sector, the generated income will be shared by household sector which would increase level of consumption, pushing the economy on faster growth track. This is the basic difference of debt and equity credit which needs our financial sector regulators attention. The prime economic advantages of Islamic banking could be as following –

    Islamic Banking and Financial Inclusion
    Though we do not have any survey to compare community wise financial exclusion in India, the primary study of data available through Sachar Committee report reflects that still around 50% Muslims are financially excluded and banking is inversely related to concentration of Muslim Population. The reason is just prohibition of interest in Islam and thus wherever Muslims are concentrated; they find means practicing interest free banking through societies and NBFCs. With inception of Islamic banking it is expected that Muslims will join Islamic banks which will remove their financial exclusion.

    The Indian Muslims have a share of 7.4% in saving deposits while just get 4.7% of credit in terms of PSAs. If we consider this as a standard proportion in national aggregate deposits with and credits maintained by SCBs, Indian Muslims annually loose around Rs. 66,700 crores because Muslims have a credit deposit ratio of 47% against national average of 74%. It shows that Muslims of India loose around 27% of their deposits by not availing as credits. After Islamic banking this deficit may be removed to curb financial loss to Indian Muslims because with 31% Muslims living below poverty line and 40% Muslim workers as own account workers, the deficit of credit is like economic assassination of the community. Muslims avail just 4% and mere 0.48% credits from special financial institutions like NABARD and SIDBI respectively because there also the community has to indulge in interest which is strictly prohibited in Islam.

    Business of nationalized banks would be increased:
    So Indian Muslims are looking for Interest free banking to avail much needed credits for development which is possible through introduction of Islamic Banking in India. This may add at least approximately 60 millions Muslims to formal financial sector. Through this financial inclusion of Indian Muslims to formal sector Islamic Banks, it is expected that Indian nationalized banks may see additional savings worth 1,00,000 crores and credit worth over Rs. 2,00,000 crores which may help banks to gain higher rate of profits compared to their SLR. After successful operation of Islamic banks by our nationalized banks, private banks may also enter into dealing with Islamic banking

    Stock Market Capitalization
    Since Islamic banking focuses on equity deposits and finance, it is expected that Stock market will be the most preferred avenue for investments by future Islamic banks of India because currently it is our stock market which is attracting new investments under Shariah Finance schemes. With advanced art of technology for investment with liquidity and profitability, it is expected that majority of deposits with Islamic banks in India will be preferably canalised to stock market. It would be the safest and fasted mode of deploying equity funds. Thus Islamic Banks may add additional 6 million new D mat accounts with expected capital gain of Rs. 60,000 crores from domestic market and around 1 trillion US $ through Islamic Banks managed by foreign bankers in India.

    Formal Sector Economic Agents
    Under Islamic banking the formal sector economic agents like corporate firms listed with stock markets would be the first likely beneficiary of Islamic banking because their shares would be subscribed through investors at Islamic banks. All the companies listed in stock markets will have additional potential subscribers to genuinely subscribe their shares instead of mere trading stocks to gain for speculation.

    Islamic banking will bring Revolution:
    Islamic banking will allow the manufacturing and retail enterprise of unorganized sector and agriculture to obtain equity finance which would bring revolution in Indian economy because our majority of poor and vulnerable workers are associated to agriculture and unorganized sector that are not in a position to afford financial risks for capitalization which affects their productivity and income levels. Their financial background is not encouraging SCBs to extend debt finance to them in lack of collaterals. While in case of Islamic banking the inadequate capital ratio in unorganized sector could be resolved through equity finance which might be a revolution is our agriculture and unorganized sector. With improved capital ratio, our poor and vulnerable workers associated with agriculture and unorganized sector might be able to compete with the formal sector workers with their enhanced productivity. This might allow our leaders to substitute grants and subsidies with financial institutions focussing on equity finance because self reliability is more important for growth which never comes through grant and subsidies but with successful utilization of equity finance. The stabilization fund for poor farmers and artisans may be utilized to experiment such finance with Islamic banking.

    Islamic Banking and Public Finance:
    Islamic banking may further help us mobilize capitals on equity base to meet the investment needs for irrigation, dams, roads, electricity, and communication projects along with other infrastructure where public finance is insufficient and debt finance may be cause deficit to the government. With Islamic banking raising equity funds would be easier for banks. We must not forget that over 50% of our rain fed lands need irrigation which need equity finance to reduce the credit costs. The total investment in infrastructure, in 2006–07 was estimated to be around 5% of GDP. It has to be 9% of GDP by 2011-12, it means that we would require Rs. 2,07,291 crores in 2006-07 and Rs. 5,74,096 crores by 2011-12 to finance our infrastructure. The total investment amounts to Rs 20,56,150 crore for the 11th five year plan. Of which Rs. 14,36,559 crores is supposed to be met from Public Investment wile Rs. 6,19,591 from private investments. Islamic banking through promoting equity finance from national and international markets may reduce this burden effectively with keeping public finance well under control and probably we may need not to worry about fiscal deficit as well.

    Since Islamic banks may also have managerial control over commercial financing, government might use banking units as source to mobilize taxes as well which might reduce mobilization costs for public revenue and increase margins for governments.

    Islamic Banking and Indian Economy:
    Viewing the probable multi dimensional positive impacts of Islamic banking on Indian economy, there are many reasons to smile for Islamic banking in India. It is helping our financial sector maintaining stability while helping real economic sector attain inclusive growth. The public finance would be much benefited through Islamic banking by generating investment funds on equity basis. Thus Islamic banking should be considered as a core economic need of the economy instead of viewing it as a religious matter for Indian Muslims. By any projections, it is expected that Islamic banking may help us mobilize business up to 5% our GDP with making due corrections in financial and real markets. Therefore it should be considered as a genuine economic need of the nation instead of considering it as religious, social or political issue. Hope all patriot Indians will flag green signal to Islamic banking as it is opening the doors towards faster and more inclusive growth – An approach to 11th five year plan of India.

    Since we have no project or viability report on this issue, it would be better to form a committee on public domain to analyze Islamic banking and its impact on Indian economy before we take any action in this regard because a delay but careful step is far better than any hasty move with prejudice.

    Syed Zahid Ahmad

    September 10, 2008 at 10:41 pm

  2. Very informative post..But i have heard from my friends who develop software for suhc banks in middle east,that these banks still make use of interest,but use it in different name..

    Thanks for sharing


    September 10, 2008 at 11:37 pm

  3. Its a misconception exists among people who have not tried to understand the practice of Islamic Banking.

    Nabeel Kattakath

    September 29, 2008 at 6:36 pm

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