RBI reiterates – Islamic Banking not possible

published on November 23, 2012

Kochi: Once again RBI Governor D Subarao made it clear that Islamic Banking will not be possible in India.Kerala is the only state pushing for Islamic Bank in Kerala and there is no constitutional provision to allow Islamic Bank.

Mooted by Communist’s first time in Kerala , Muslim League led UDF (As claimed by a Muslim League Minister) is also pulling strings from behind for Shariat based banking system in India.Central Government has earlier asked the opinion of RBI. RBI then itself has made clear that that Islamic banking was not possible since the concept of interest payment was ingrained in present regulations.

Sheikh Muhammad Taqi Usmani one of the main proponent of Islamic banking itself have recently admitted that  85% of these so called Islamic finance is Un- Islamic!
Still many Islamic banks across the world are surviving without Interest! Yes That is right !. For investments they rename ‘Interest Rate’ as Profit Rate! For loans borrowed they charge ‘Fees’ instead of Interest! Again In case of Islamic mortgages to buy houses the follower pays Rent and not Interest!

BBC have earlier exposed this hypocrisy in the name of Islamic Banking. According to their report
(http://news.bbc.co.uk/1/hi/business/8401421.stm)
These bankers had a way of dealing with this, as one investment banker based in Dubai, working for a major Western financial organisation explains:
“We create the same type of products that we do for the conventional markets. We then phone up a Sharia scholar for a Fatwa [seal of approval, confirming the product is Shari’ah compliant].
“If he doesn’t give it to us, we phone up another scholar, offer him a sum of money for his services and ask him for a Fatwa. We do this until we get Sharia compliance. Then we are free to distribute the product as Islamic.”

Thanks to leaders like Subramaniam Swamy , The move to introduce Islamic Banking in Kerala through back door were nipped in bud. Nationalist organisations and leaders in Bharath have to keep a constant vigil against these repeated attempts to Islamise our society by hook and crook.    
 

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