Can India show a green signal for Islamic Banking

D

deepakraam

Deepak Narayanan
The concept of Islamic Banking is gaining momentum.Most of the countries in ME are following this concept.Even sme of the Indian companies are tailoring their financial products to suit the Islamic Banks to capture the ME market.Can India show a green signal for this concept.

Pros:
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1.Hope this will give sme respite to the rising interest rates which is seriously affecting the middle income Balance sheets.

2.This would create a good platform for India to show the world that Muslims and Hindus can trade with peace.

3.Islamic Banking is an emerging concept.So Indians can study this model & can refine it to the needs of Indian market.

Cons:
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1.Intially the concept would trigger a lot of violence frm diff communities.

2.Nt sure if the people of India will trade with a bank which offers no interest rates.


Need ur views


-Deepak.
 
Its good to start the new trend of Banking, there are always two sides of every coin. The life cycle has to continue, Islamic banking should be taken as a positive step as it will involve a new learrning curve to the Indian Bankig industry.

All in All a positive move
 
Islamic Banking has got concepts like riba, mudarabbah and some of the concepts are not exactly established. Actually some people are of the opinion that islamic banking is a roundabout route for banking in the islamic world, where the shariat specifies that collecting interest in money is a crime.Lot of nitty gritties to be solved and the lot of things to be researched.
 
islamic banking have been prevalent in many of the countries in the gulf and have been largely successful..... i heard of an islamic bank in Mumbai, India too..... it was successful in the initial period of its operation when it built some townships in the vasai virar belt... later it failed for it was not able to get back the loans it offered.........
 
well the concept is still in its inception stage in india but has surely developed in the ME. Mostly the islamic banks are based on the concept of profit sharing rather than giving fixed interest so the concept will get momentum, many banks may adopt it and find it more suitable...

So there is gr8 substance in the concept.......!
 
but the thing which would matter is the type of service rendered by the service provider.....
it should be good so as to attract the customers...
 
islamic banks does not give interest rates but they give money nearly same as the interest rate. i don2t understand their logic. i don't know much about indias banking system but most companies make india their financial center due to your banking system and i believe this is a good thing for india...
 
Interesting topic initiated by Deepakram.

Basic differences between conventional and Islamic banking needs to be understood with an open mind.

Profit-making under Islamic principles ( called Shariah) between parties under mutually agreed terms with transparent contracts without small print and onerous clauses and without one-sided penalties and trading in socially acceptable products and services is perfectly OK under Shariah.

Shariah boards in tandem with regular Boards oversee every aspect of operations and products and contracts to ensure risk management and prudential banking is in force.

Depositors are actually partners in investment and share risks with the investment Manager who is the Islamic Bank.

We need to get away from the mind-set (mostly from Muslims themselves who are skeptical without any in-depth knowledge or research) that Islamic Banking is replacement of the term 'Interest" with 'Profit". It is definitely not so. The basic difference is in the process and concept of each product.

Islamic banking is also known as E
 
(CONTINUED)
Islamic banking is also known as Ethical Banking which can also be converted to Green Banking without much difficulty.

Bankers are now aware of the better performance of Islamic banks in spite of the melt-down and are keen to analyze Dow Jones Islamic Index where the companies screened thru Shariah compliance have preformed better than debt-ridden companies across the globe.

India will just follow some developed countries like UK, France, Switzerland and Germany who have approved Islamic Banking licences. This will unlock billions of unbanked funds from Muslims.

It may be of interest to know that a survey in GCC countries revealed that 32% of the customers of Islamic Banks are non-Muslims who quoted their preference due to transparent and unambiguous contracts and competitive pricing.

Pros far outweigh cons in this move to an alternative banking channel which will benefits everyone, not just Muslims.
 
No I don't think it is possible considering the islamic concept of banking becoz the processes and business situations have changes a lot from when islamic banking was developed and in order to cope up we need to change ourselves.
 
New concepts are always welcomed....................... but authority should take care of all the possible mis use of it...........
 
Islamic Banking has got concepts like riba, mudarabbah and some of the concepts are not exactly established. Actually some people are of the opinion that islamic banking is a roundabout route for banking in the islamic world, where the shariat specifies that collecting interest in money is a crime.Lot of nitty gritties to be solved and the lot of things to be researched.
 
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