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Raghuram Rajan’s Name in Clarivate List of Nobel Prize Worthies

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Rahuram Rajan
Former RBI governor Raghuram Rajan. ians

New Delhi, Oct 7: Former Reserve Bank of India (RBI) Governor Raghuram Rajan’s name figures in this year’s list of possible winners of Nobel Prize in economics brought out by Clarivate Analytics.

The economics prize will be announced in Stockholm on Monday, according to Nobelprize.org.

Clarivate Analytics, earlier a Thomson Reuters unit, publishes a list of possible Nobel Prize winners based on research citations, ahead of the formal announcement by the Nobel committee.

Raghuram Rajan is currently the Katherine Dusak Miller Distinguished Service Professor of Finance at the Booth School of Business, University of Chicago.

Giving the list of six possible candidates for the economics Nobel, Clarivate said these were Citation Laureates — standouts whose research is clearly “of Nobel Class” according to its significance and utility, as attested by markedly high citation tallies recorded in the Web of Science.

According to information available on Clarivate’s website, in the last 15 years, 45 of the selected researchers had gone on to receive a Nobel — nine in the same year in which they were tipped by Clarivate and 18 within two years of the distinction.

Raghuram Rajan’s three-year term as RBI governor ended on September 4, 2016.

Exactly one year after his term as RBI governor came to an end, Rajan published a book with his “commentary and speeches” to convey what it was like to be at the helm of the central bank in “those turbulent but exciting times”.

Rajan, who was considered a vocal RBI Governor, in his book “I Do What I Do” said The demonetisation tool used by the Indian government to drive out black money could have long-term benefits but its short-term economic costs would outweigh them.

“I was asked by the government in February 2016 for my views on demonetisation, which I gave orally. Although there might be long-term benefits, I felt the likely short-term economic costs would outweigh them, and felt there were potentially better alternatives to achieve the main goal,” he wrote.

The Indian government undertook the demonetisation drive on November 8, 2016 by banning high denomination Rs 1,000 and Rs 500 notes.

Raghuram Rajan is said to have predicted the 2008 market crash caused by the housing market crisis in the US that put its economy into deep recession and set off a global slowdown.

In 2011, he published the acclaimed “Fault Lines” on how hidden financial fractures threaten the world economy.

He has won the British magazine Central Banking’s Central Banker of the Year award for his handling of the rupee crisis in 2013 and bringing back foreign investors to the country.

A graduate of the Indian Institute of Technology, Delhi, Raghuram Rajan served as visiting professor at Stockholm School of Economics and at Kellogg School of Management.

He was also a visiting professor at MIT Sloan School of Management.(IANS)

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Islamic Banking in India- a Wrong precedence with dangerous consequences

More than financial impact, Islamic banking might be an adverse step towards secular ethos of the Hindu majority India

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Faisal Islamic Bank , Khartoum, Sudan. Wikimedia Commons

Amit Srivastava

As the year 2016 began,the decision to allow Islamic Banking was cleared up by the Reserve Bank of India. Reason: To honor the concept of financial inclusion.

In essence , the Committee on “Medium-Term Path for Financial Inclusion”, headed by Deepak Mohanty, has recommended “interest free windows” in existing conventional banks. It was done to pave ways for Islamic Banking in which the interest rates are banned. Now, India will get its first taste of sharia-compliant banking when the Saudi Arabia-based Islamic Development Bank launches operations in Gujarat. Let us go back a few years. In year 2007, the RBI working group had recommended that India must not permit Islamic banks to operate in the country. Now the RBI Governor Raghuram Rajan  has reversed the institution’s earlier stand on Islamic Banking. Needless to say, the central government headed by BJP Prime Minister Narendra Modi is equally keen on implementing the Islamic banking.

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Dynamics of Islamic Banking?

As per Sharia Laws, the interest on principle is ‘Haram’. Hence, Islamic banking doesn’t have concept of interest-rates. It may adversely affect the entire financial ecosystem of the nation. More than financial impact, Islamic banking might be an adverse step towards secular ethos of the Hindu majority India.

Before we analyze the socio-economic impacts of Islamic Banking, let us know about the various aspect of Islamic banking. Basically, Islamic banking has concepts of: Riba (interest), Haram (Non-Islamic), Halal (Islamic), Gharar (uncertainty), Maysir (gambling) and Zakat (Charity). Riba is the most important aspect of interest-free banking, and means prohibition of interest. Haram/Halal is a strict code for interest-free financial activities and its implications on Muslims and non-Muslims. Ghrarar/Maysir bans gambling in all forms. And Zakat is an instrument for Islamic charity.

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These aspects of Islamic banking strictly make it exclusive for Muslims. As per Sharia jurists, riba transactions with non-Muslims in Dar-ul-Harb (a Non-Islamic State) are not permissible. An Islamic bank also impose Gharar and Maysir on non-Muslims (Kafirs). As per Hadith 8.24, it is not permissible to give zakat (charity) to a Kafir (Non-Muslim).

Even though few non-muslim economists have praised Islamic Banking, it has serious repercussion on the conventional financial system. There is intentional financial fraud being practiced by Muslim gangs. They intentionally provoke Muslims to harm the existing haram banking system. No wonder why, there is a huge number of small and medium loan-defaulters among Indian Muslims. They take loans from Public Sector bank and never repay. If Islamic Banking would be allowed everywhere, this process might get more in practice. Such defaulters will borrow from public sector bank (non-Islamic banks) and deposit in Islamic banks. This will increase the funds in Zakat. And Zakat is used for Islamic terrorists’ organization and Wahabi radical organizations. As per some reports, even ISIS is being funded indirectly by Zakat contributions from India.

In this context, it is also important to note that Sharia laws are only safe guard for Muslims. They allow Muslims to exploit Kafirs (non-Muslims) in all form, even those which are Haram for Muslims. For example, Because Allah hates non-Muslims (Qur’an 40:35), Koran commends Muslims to mock the non-Muslims (Qur’an 40:35), betray (86:15), terrorize (Qur’an 8:12) and behead Kafirs (Qur’an 47:4), snatch their wives for sex-slaves and captives (Qur’an 4:3, 4:24, 33:50).  Such hatred of Quran against Kafir is being preached to Muslims every day. If the demand for Sharia laws is fulfilled, they would be encouraged to do the gruesome crimes against non-Muslims as their holiest book prescribes so.

There is a risk of Terrorism funding via Islamic Bank

The logic of financial inclusion and few benefits by Islamic banking are just farce against the potential damages to be done by it. More than destroying non-Islamic banks and funding the Islamic terrorist, Islamic banking poses serious threat on the ethics of policy formation and the common good of the society. Now, when polygamy and marrying off the minor girls are allowed by courts of law in India, the upcoming Islamic banking would led it to a place from where Sharia rule India would become a reality. The same Sharia rules have made wife-beating legal in many Muslim countries. If wife-beating, sex-slavery are allowed in India tomorrow, it won’t be a surprise because such things are very much legal under Sharia Laws. Islamic banking sets precedence toward such horrific Sharia law. In above context of Islamic approach towards, non-Muslims it is imperative to safe-guard the welfare of the citizens. Just for 15% Muslims, government must not ignore the safety of 85% non-muslim population of India. Self-proclaimed secular and liberals are silent on this heavily communal move, because it would hurt the vote-bank of their masters. And right-wingers won’t prefer to speak against it as their government is implementing it. However, as vigilant citizens, we must oppose such regressive moves and save India from becoming another Syria or Pakistan.

Amit is a freelancer based in India. Twitter: @amisri

4 responses to “Islamic Banking in India- a Wrong precedence with dangerous consequences”

  1. Now, we have a guy who is more knowledgeable than Mr. Raghuram and Modiji. Why don’t you apply for RBI governor post ;). Stop this trash talks if you have no idea of financial system, Joker.

  2. Get you basics right.
    I doubt your knowledge in finance.
    And please do no misquote.
    The reference you gave are not legitimate or are half statements which eventually change the message.
    So just don’t write for the sake of it.
    Just writing as article to create disharmony is not ethical, if you are a genuine writer.

  3. Disgusting article, this is simple common sense, if you are involves in profit and loss sharing then there will growth and loss for all, now in all the banks which deals in interest never goes down in loss but we have already heard that most people are bankrupt.

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Raghuram Rajan assures India’s economic reforms are in right direction

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Raghuram Rajan GST bill

Davos: Referring to some of the obsolete regulations that are currently in place, RBI Governor Raghuram Rajan said, “Economic reforms in India are going in the right direction but the level is wrong.”

In a television interview, Rajan said, “Well let me put it this way, the direction is the right one but the level is wrong. We have too much of the wrong kind of regulation.”

“So we do need to hack away at this, and it will take time, it doesn’t happen overnight. We are doing it and do recognise that we overregulated. That business needs a better environment,” he observed.

“At the same time, there is a whole set of new business coming in that we have to find ways to deal with an example, online lending. How do we do with what happens in a downturn?” Rajan said.

He was responding to a question on economic reforms in the country.

Rajan bitterly regretted that people tend to talk only about big ticket items, but not the other reforms that are currently being undertaken.

“Well, I think one tends to focus on the big iconic items like in India there’s now a goods and service tax which is likely to unify the country. That’s stuck so far in some Parliamentary discussion between the opposition and government. Hopefully, it will be done sooner rather than later. But really there’s a lot going on the ground which is less obvious, “he said.

“For example, last week the Prime Minister inaugurated a programme called ‘Start Up India’ which is about really eliminating the bureaucratic hurdles of starting a new business. New business had to register with 10, 15, 20 different authorities including the pension fund,” Rajan said.

“You have one employee why do you need a pension fund at this point? So the idea here is to make it simpler to start, but also remove the inspections. For three years no inspectors would show up. You self-certify what you did,” he said, adding that these kinds of reforms are really building on each other.

“And there’s a very vibrant private sector in India also which is taking off. Internet market places, fantastic new development because what India doesn’t have is cheap land. You can’t build retail stores everywhere.

“But if you build a virtual warehouse with warehouses performing the role of you now, storing goods. You can connect small town households to the big market. And you can connect small town manufactures again to the big market,” he said.

Responding to another question, Rajan said he is not worried about Chinese economic slowdown.

“In terms of the quantity of growth, there’s still a lot of growth coming from China in terms of dollars. Of course, percentages are falling all the time. That is natural to be expected of an economy which is growing richer and therefore which is going to slow,” he said.

“So I’m not excessively worried about Chinese growth,” Rajan said.(Inputs from agencies)

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Transparent tax system must: Raghuram Rajan

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Mumbai: In order to attract higher investments, the Indian taxation system should be more transparent, Reserve Bank of India (RBI) governor Raghuram Rajan said on Monday.

Speaking at a seminar here, Rajan stressed that the Indian tax system should be transparent and predictable to attract foreign investments.

According to him, to make products in India, a framework has to be created making it easy to do business in the country.

He also said the supply side issues have to be addressed so that prices were under control and the demand side was taken care of.

Stating that nine percent growth in economy was an aspiration, Rajan said the supply side constraints had to be removed while ruling out growth sans inflation.

He said the human capital in the country needed to be upgraded so that businesses get the kind of people it requires.

Rajan also called for greater coordination between leading central banks so that the monetary policies can be used in a more effective manner.

(IANS)