RBI not to pursue proposal for introduction of Islamic banking in India

Agencies
November 12, 2017

New Delhi, Nov 12: In a reverse move, the Reserve Bank of India (RBI) has decided not to pursue a proposal for introduction of Islamic banking in the country.

Replying to an RTI query, the central bank said the decision was taken after considering "the wider and equal opportunities" available to all citizens to access banking and financial services.

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

The issue of introduction of Islamic banking in India was examined by the RBI and the government of India, it said.

"Taking into account, the wider and equal opportunities available to all citizens to access banking and financial services, it has been decided not to pursue the proposal further," the central bank said in its reply to the RTI application filed by this PTI correspondent.

The RBI was asked to provide details of steps being taken for the introduction of Islamic or 'interest-free' banking in India.

Prime Minister Narendra Modi had on August 28, 2014 launched Jan Dhan Yojana, a national mission to bring about comprehensive financial inclusion of all the households in the country.

In late 2008, a committee on Financial Sector Reforms, headed by former RBI governor Raghuram Rajan, had stressed on the need for a closer look at the issue of interest-free banking in the country.

"Certain faiths prohibit the use of financial instruments that pay interest. The non-availability of interest-free banking products results in some Indians, including those in the economically disadvantaged strata of society, not being able to access banking products and services due to reasons of faith," the committee had said.

Later, on the instruction of the central government, an inter-departmental group (IDG) set up in the RBI examined the legal, technical and regulatory issues for introducing interest free banking in India and has submitted its report to the government.

The RBI had in February last year sent a copy of the IDG report to the finance ministry and recommended an "Islamic window" in conventional banks for gradual introduction of Sharia-compliant banking.

"In our considered opinion, given the complexities of Islamic finance and various regulatory and supervisory challenges involved in the matter and also due to the fact that Indian banks have no experience in this field, Islamic banking may be introduced in India in a gradual manner.

"Initially, a few simple products which are similar to conventional banking products may be considered for introduction through Islamic window of the conventional banks after necessary notification by the government," it had said in a letter to the ministry.

The letter further reads: "It is also our understanding that interest free banking for financial inclusion will require a proper process of the product being certified as Sharia complaint will be required both on the asset and liability side and the funds received under the interest free banking could not be mingled with other funds and therefore, this banking will have to be conducted under a separate window."

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News Network
January 3,2020

Dhaka, Jan 3: Bangladesh's paramilitary force chief said on Thursday that a total of 445 Bangladeshi nationals returned from India in last two months following the publication of the National Register of Citizens (NRC) by the Indian government.

Border Guard Bangladesh (BGB) Director General Maj Gen Md Shafeenul Islam disclosed the figure during a press briefing here.

"About 1,000 people were arrested in 2019 for illegal border crossings from India to Bangladesh, with 445 of them returning home in November and December," he said.

After verifying their identities through local representatives, BGB came to know that all the intruders are Bangladeshis, Islam said, adding that 253 cases were lodged against them for illegal trespass, while initial investigations found that at least three of them were human traffickers.

The BGB Director said the trespassing did not create any tension between the border forces of Bangladesh and India.

Last week, Islam visited India where he said that the creation of the NRC is completely an "internal affair" of India and the cooperation between the border guarding forces of the two countries is very good.

He said the BGB will continue to do its work of preventing illegal border crossings as per its mandate.

A BGB delegation, led by Islam, was on a bilateral visit to India to hold DG-level border talks with its counterparts, the Border Security Force (BSF).

The talks took place from December 26-29, during which a host of issues related to cross-border smuggling and activities of criminals and others along the 4,096-km-long front were discussed.

Responding to a question, Islam said, "No discussion was held at the conference over the (NRC) issue".

He said during the five-day talks held in New Delhi, the BGB demanded that the BSF should take effective steps to prevent killings of Bangladeshis on frontiers as casualty figures sharply rose in 2019.

"The number of border killings in 2019 was highest in the last four years. As per our calculation, the number of such unexpected deaths was 35," the BGB chief said.

However, the BSF estimate of the casualty figure is much lower than our calculation, he said.

Islam said the BSF is following the policy of maintaining maximum restraint and minimal use of force even after being attacked by "armed border offenders".

A statement issued by the BSF last month in New Delhi after the conclusion of the DG-level talks said, "On the concern of the BGB regarding the death of Bangladeshi nationals on borders, it was informed to them that a non-lethal weapon policy is strictly followed by BSF personnel on borders.

"Firing is resorted to only in self-defence, when BSF patrols are gheraoed and attacked by ‘dah’ (a sharp-edged weapon) etc. It was specified that the BSF does not discriminate between criminals based on nationality," it said.

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News Network
June 5,2020

Bantwal, Jun 5: A very rare white python, which had entered a house at Kavalakatte in Bantwal taluk of Dakshina Kannada, was caught by snake catcher Snake Kiran on Friday handed over to the authorities of Pilikula Nisargadhama.

This extremely rare white coloured python known as Albino was seen in the house of one Naushad.

The occupants of the house as well as residents of the area were panicky over seeing it. 

Later a friend of Naushad informed Snake Kiran who caught it and handed over to the care of Pilikula as per the advice of forest officer Sridhar.

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News Network
April 19,2020

Bengaluru, Apr 19: Former Karnataka Chief Minister H D Kumaraswamy on Sunday thanked Chief Minister B S Yediyurappa for backing his family regarding his son Nikhil s wedding, which drew flak for allegedly violating lockdown norms.

Asserting that social distancing was maintained during the wedding, the JD(S) leader in a series of tweets hit out at those accusing his family of violating lockdown norms, by stating that they were doing it out of "political hate".

"Despite maintaining social distancing and following rules during Nikhil's marriage, there are discussion that norms were not followed.

Because of political hate, poisonous comments are being made about an auspicious event, but Chief Minister B S Yediyurappa by rejecting all this is standing by the truth," Kumaraswamy said in a tweet in Kannada.

He said, "heartfelt thanks to Yediyurappa for his statement that a big political family in the state has conducted the marriage ceremony in a simple way."

Nikhil, the grandson of former prime minister H D Deve Gowda, entered wedlock on Friday at a Bidadi farmhouse with Revathi, the grandniece of former Congress minister M Krishnappa.

On the day of the marriage several posts on social media, also media reports had criticised the Gowda family for violating locdown norms and social distancing during the event.

Coming to the defence of Gowda family, Yediyurappa in response to a question on Saturday told reporters "They (family) had all the permissions and the event was held in a simple fashion. There's no need to discuss this.

"Despite having many relatives, they stuck to the limitations. For this, I congratulate them," he had said.

Stating that lockdown rules were followed during Nikhil's marriage, Kumaraswamy said, "By looking for politics in Nikhil's marriage, certain faulty minds on social media are spewing venom that is in their mind."

Gowda family had scaled down Nikhil's wedding, which was earlier planned in a 95-acre land near Ramanagara with a lavish set, with lakhs of party workers and well-wishers in attendance, followed by a grand reception in Bengaluru.

Nikhil has acted in couple of Kannada films in the lead role.

He had contested the 2019 Lok Sabha polls from the party bastion of Mandya and had lost against multilingual actress Sumalatha Ambareesh, an independent candidate supported by BJP, in a bitterly contested polls.

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