Specious Arguments and False Propoganda
Chanced on this article a few days back, “Banks have no faith in Muslims”
It is so blantantly propagandist, I am surprised that someone like IBN found it fit to go in print and on their website. The writer claims that the “Muslim community has missed the great gold rush” of taking loans…
I fail to understand how borrowing a loan can be called a “gold rush”. Do these people even bother to check the meaning of words? Or has journalism been reduced to cut-and-paste, spellcheck, post on web?
There is more…
In support of the conclusion drawn above, the reporter writes,
“For instance, Delhi’s New Friends Colony has branches of a number of private sector banks, public sector banks, nationalised banks and international banks. Right across New Friends Colony is Zakin Nagar, a Muslim ghetto.
Despite the fact that the area has a larger population living there, all it has is a single bank.”
Extraordinary! Are we saying that Banks should now loan money based on quotas for each religion and each minority? perhaps also based on the colour of people’s skins? colour of their eyes?…I dont see too many green-eyed people availing of bank loans in India…the Banks seem to be discriminating against them…right?
If Banks really had a problems with Muslims, why would HSBC, Citibank and dozens of other banks offer mortgages specially tailored to meet “Sharia laws” against paying/receiving interest?
Or did the writer forgot to “google” for Islamic banking when he was doing his “research”?
Update: Pl use the thread of comments below to discuss “Islamic Banking”, Sharia-compliant banking etc. Thanks.
Excerpts from a somewhat related article, Islamic Banking: Appeasement leading to peril!? by B R Haran:
…Even while the Centre was considering the idea of introducing Islamic Banking, the Kerala state government took a fast decision in mid-August and approved a project report prepared by Ernst & Young.
In its order dated 14 Oct., the Kerala government accorded sanction for registration of an Islamic finance serving company by Kerala State Industrial Development Corporation, to provide financial service as per Sharia laws.
Kerala State Industrial Development Corporation, the designated agency for the formation of the bank, would have 11% stake in the proposed banking company and it would be initially registered as a non-banking finance company and later get transformed into a full-fledged Sharia-compliant bank. The government had planned to complete all registration formalities in 2009, so that the NBFC could become operational in 2010.
In a reply (CHN/RIA/09/985/22 dated 10.11.2009) to the application of one Mr. T.G. Mohandas under ‘RTI Act’ of 2005, Kerala State Industrial Development Corporation represented by its Managing Director stated that: KSIDC is taking steps to promote Islamic Financial Institution; it is a company promoted by the Private Promoters and KSIDC; the proposed institution will not collect interest or charge interest for financing. It will function with full compliance of SHARIA PRINCIPLES. Advertisements for filling up vacancies for the positions of Chief Executive Officer (CEO), Company Secretary and so on have been placed in the website (http://ksidc.org/) and in the terms of reference for CEO, it is stated that he will report to the Sharia Advisory Board.
…
This move of the Kerala Government was challenged by former Union Minister and Janata Party President Dr. Subramanian Swamy in the state High Court.
…In his PIL, Dr. Swamy contended that public money was being appropriated to favour a particular religion in a secular country, as KSIDC has 11% stake in the multi-crore bank.
He said, “The government’s participation is clear instance of state favouring a particular religion. The Sharia is the canon law of Muslims. A financial services company set up with government participation which would follow the canon law of a particular religion is a clear instance of the state favouring a particular religion. This is violative of Article 14 and 25 of Constitution which promises equality before law and right to freedom of religion. A 7-judge bench of the SC had ordered that no public money should be used for promoting institutions of a particular religion.â€
The latest news on this:
Bear in mind that the KSIDC (a govt body) will have an 11% stake in the bank – which conceivably goes against the notion of the state staying away from religious matters.
***
Jai Ho “Secular” India. 🙁
So the remittance economy has started it’s slow walk towards shariah economy? Big deal!!! The only thing Keralite Hindu friends can do is to take a big loan from Shariah bank and relocate. Soon Kerala will be Islamic nation and there would not be any obligation of paying back. Just kidding!!
In the context of Islamic Banking etc, a somewhat related link: https://www.box.com/s/l6ecdopxl612sbmdsc3e
Economic Modernization in Late British India:
Hindu-Muslim Differences
by
Timur Kuran* and Anantdeep Singh**
December 2010
Abstract. The Muslims of South Asia made the transition to modern economic life more slowly than the region’s Hindus. In the first half of the twentieth century, they were relatively less likely to use large-scale and long-living economic organizations, and less
likely to serve on corporate boards. Providing evidence, this paper also explores the institutional roots of the difference in communal trajectories. Whereas Hindu inheritance practices favored capital accumulation within families and the preservation of family fortunes across generations, the Islamic inheritance system, which the British helped to enforce, tended to fragment family wealth. The family trusts (waqfs) that Muslims used to preserve assets across generations hindered capital pooling among families; they were also ill-suited to profit-seeking business. Whereas Hindus generally pooled capital within durable joint family enterprises, Muslims tended to use ephemeral Islamic partnerships.
Hindu family businesses facilitated the transition to modern corporate life by imparting skills useful in large and durable organizations.
An update on “Islamic Banking”/ Sharia banking in Kerala from RBI nod to first Sharia-based NBFC, to open in Kerala BT Online Bureau, Mumbai, August 19, 2013:
The Reserve Bank of India (RBI) seems to have moved closer to changing its stand on allowing Islamic banking in the country, permitting state-run Kerala Industrial Development Corporation to launch a non-banking finance company (NBFC) that will offer services compatible with Sharia law.
…
However, RBI on Sunday clarified that what it has allowed “is not Islamic banking” in the strict sense, as the permission is for not for commercial banking but only for a NBFC.
Outgoing Governor Duvuuri Subbarao, who is retiring on September 4, had earlier said Islamic banking was not possible in the country.
“Islamic banking is not possible in the country as there are some legal problems,” Subbarao had said in November 2012 and added that the central bank could look at other avenues to help productively channelise the huge NRI funds.
Also read: Growing interest by
Sarika Malhotra, Aug 18, 2013