Conference seeks introduction of Islamic Participatory Banking

New Delhi, Sep 1 (UNI) An International Conference on Participatory Banking on Finance today urged the Government and the banking system to take necessary legislative and regulatory measures for introducing 'Participatory Banking', popularly known as Islamic banking in the country.

A two-day Business Proposition of Delhi-based Institute of Objective Studies and Indo-Arab Economic Cooperation Forum held at the Parliament House Annexe passed a resolution to this effect saying that there were several products like mutual funds, venture finance and leasing finance in the country to prove that the Participatory Banking can be viable in India. With slight marginal changes these can be acceptable to a section of Indians who would not want to deal with interest based banking.

Rajya Sabha Deputy Chairman K Rehman Khan who is also the Chairman of the Organisers Managing Committee told newspersons that India was the house for over 150 million Muslims, the second largest religious group in the world and Islam like Hinduism and Christianity did not approve taking or paying interest.

Participatory Banking will fulfil the Islamic obligations of large sections of Indian community, he added. The regulatory bodies like RBI and SEBI and Indian banking industry should provide viable alternative for section of people to invest their saving in tune with their religious faith. The banks can start one section within their system catering to those believing in participatory banking system, Mr Khan added.

He said Islamic Financial Market based in participatory principles was in the order of 700 to 800 billion dollars and would touch two to three trillion dollars in the next decade.

India needs huge investments for its infrastructure and Islamic financial market was keen to invest in India's economy through its product like 'Sukuk' (Islamic bonds) on profit sharing basis. The only condition imposed on the borrowers was that the money invested can't go to wine making, gambling things that were not good for the society.

Dr M Manzoor Alam, President of the Indo-Arab Cooperation Forum said that Participatory Banking system exists in one third of the UN countries including countries like Switzerland, China, Russia and several banks of US and UK.

UNI