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Idea of Islamic Banking by RBI rejected by Modi Government, “Islamic Window” in Conventional Banks is now a Myth

Islamic or Sharia banking is a finance system based on the principles of not charging interest, which is prohibited under Islam

Reserve Bank of India. VOA

New Delhi, Dec 11, 2016: The idea of Islamic banking by RBI has been rejected by the Finance Ministry since the Central Government has already introduced several inclusive schemes for the benefit of the citizens. Schemes such as Jan Dhan Yojana and Suraksha Bima Yojana are some of those.

It was last month, in November when the Reserve Bank of India (RBI) proposed the introduction of “Islamic window” in the conventional banks for “gradual” start of Sharia-compliant or interest-free banking in the country.

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Islamic or Sharia banking is a finance system based on the principles of not charging interest, which is prohibited under Islam.

In the Lok Sabha, a statement was made by Minister of State for Finance Santosh Kumar Gangwar which suggested that the introduction of Islamic Banking in India will bring with it numerous legal hurdles.

It was the committee headed by Raghuram Rajan (who later became the RBI Governor) and in 2008, he submitted a report to the UPA Government that did not mention anything about the Sharia Banking but suggested a need of having an interest-free model in India.

Presently, the idea of Islamic Banking is rejected by an inter-departmental group set up by Reserve Bank of India (RBI).

– prepared by NewsGram Team

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Arvind Kejriwal Accuses Modi Government of Betraying Farmers

The Modi government was worried more about Ambanis and Adanis, he alleged

Arvind Kejriwal giving speech suring chanda bandh satyagrah
Arvind Kejriwal giving speech during chanda bandh satyagrah

The Modi government has stabbed farmers in the back by telling the Supreme Court that it cannot implement recommendations of the M.S. Swaminathan Commission which the BJP promised to do so in 2014, Delhi Chief Minister Arvind Kejriwal said on Friday.

Addressing a farmers rally here at Jantar Mantar, the Aam Aadmi Party (AAP) leader also slammed the Centre’s crop insurance scheme as a “fraud” and demanded that it be scrapped.

“Soldiers at the borders and farmers at thier farms are in distress. It’s a sad state of affairs. The BJP has dishonoured the promises it made in 2014,” Arvind Kejriwal said.

Thousands of farmers from across the country marched from Ramlila Maidan to Jantar Mantar in the heart of the capital seeking loan waiver and higher crop prices and warning political parties not to ignore their plight.

Reminding the BJP’s promise vis-a-vis the Swaminathan Commission, Kejriwal accused the ruling party of going back on its election promise.

“They have filed an affidavit in the Supreme Court and said they can’t implement it. There can’t be a greater betrayal than this. This government has stabbed farmers in the back,” he said, asking the government to take back the affidavit.

Narendra Modi
Narendra Modi (Wikimedia Commons)

He warned that if it failed to do so, farmers would teach the saffron party a lesson in the 2019 elections.

Demanding loan waiver for farmers, he also said that they must get fair price for their produce.

“They are not begging but fighting for their rights. Once their loans are waived, they won’t demand it again. The government should also buy the farmers’ produce at appropriate price.”

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He blasted the government’s crop insurance scheme.

“This is not an insurance scheme but it is BJP’s ‘kisan daka yojna’ (plunder farmers scheme). This must go and the money paid by farmers be returned. Instead, the government should start a compensation scheme for farmers.”

The Modi government was worried more about Ambanis and Adanis, he alleged. (IANS)