Muslim businessmen ask Government to start Islamic Banking in India

Muslim businessmen ask Government to start Islamic Banking in India

Some leading Muslim businessmen from Uttar Pradesh have asked the government to allow Islamic banking in India.

In this regard, a proposal has been submitted to the Planning Commission by them for setting up Islamic Development Bank, which would not charge interest on loans etc, under Islamic norms.

Islamic Development Bank is headquartered in Jeddah, Saudi Arabia, and it does not run from the interest income. Also, the money from the bank can not be used for financing businesses related to liquor, pornography etc. This is being run by the Organisation of Islamic Countries.

“There is a need to open such banks in India as Islam considers interest as ‘haraam’ (unethical) and therefore, Muslims are reluctant to take loans from the banks as interest is charged in such banks,” member of Islamic Development Bank Mohammad Ishaak told PTI.

He said one of the reasons for widespread poverty among Muslims was that they were not open to taking loans from the banks.

He added that 14 crore Muslims of the country will be able to do business once they start getting interest-free loans.

“Therefore, we have sent a proposal to Planning Commission Deputy Chairman Montek Singh Ahluwalia so that we can also start an Islamic banking with the help of Islamic Development Bank in Saudi Arabia,” he said.

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9 responses to “Muslim businessmen ask Government to start Islamic Banking in India

  1. Dear Sir, 18.09.2009

    We have been listening many efforts taken by muslim personalities in India for opening the Islamic Bank and submitted many proposals to the Indian Government but so far the approval of RBI has not been obtained and no bill was placed in the parliament.

    Further more representation and studies to be placed in the parliament and other related bodies to get the approval and let us hope to open many Islamic Banks in all parts of India which will be more profitable and more beneficial than the interest imposed banks.

    Best regards,

    M.U.Rahman

  2. This is indeed a path breaking idea for Indian Muslims. How can I get more details on this and also about how much effort has been done so far to persuade Indian Government on this. I wish to write some editorial articles on Islamic Banking and Its benefits for Indian Muslims.

  3. doing good work keep going may Allah help u inn this

  4. going good keep on going may Allah help u in ur work

  5. its a Good news…

  6. Nawabmansoori

    Yai bahut achha prayas hai un musalmano ke liye jo padh na chahate hai ur apna chhota bussiness karna chahte hai.

  7. Islamic banking system is one the best way of saving the life of thousands of farmers and businessmen of India who are commiting suicide due to burden of interests on ther loans which they had taken from commercial banks which charge huge interests. Indians are living a miserable life coz of interest burden in ther lives. This kind of banking is very good.
    from… Shamshuddin Khan , lecturer in economics

  8. MohammedAbdulkhader

    Islamic Banking system is very successful in Gulf States,Europe, Malaysia, and so many places. why not India should take a leading step in this Direction? We muslim business people should work hard and honestly towards this direction. I urge all muslim businessmen to come forward with good neyath (intensions) to start some kind of private financial Institute to make a way for recognized bank. I hope if we do run some kind of financial institute, the government can recognize Bank too. I have so many ideas on this subject, and willing to discuss and share my knowledge. anybody can reach me at makhaderwgl@gmail.com

  9. This is the great changing in finance field, may Allah give us knowledge to know the scenario clearly.

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