What will be outcome if we will accept Islamic rules for banking and other business transactions.I have lot of confusion with but i want business experts to help me out.
From India, Srinagar
From India, Srinagar
Dear Arifshah,
Islamic banking or otherwise, the main challenge of the humanity is to bridge gap between rich and poor. Day by day this gap is increasing and not decreasing. The gap is well evident in the member countries of Organisation of Islamic Conference (OIC).
Taliban rule in Afghanistan from 1996 to 2002, could not narrow down this gap. Not only in banking, but in all respects i.e. social, political, economical etc they had 100% Islamic rule. Their rule turned ordinary citizens into paupers.
What about India? Check the banks whose all the board members are Muslims. History of these banks (like any other bank) is fraught with scandals, frauds, corruption and so on. Bangalore's famous and very old bank is classic example. So forget about Islamic banking, let us find out whether we are able to run regular banks perfectly.
By the way JK Bank, whose head quarter is in Srinagar, has Gross NPA 1.61% <link updated to site home> What does it indicates?
You may feel my views are little uncharitable. But then trouble with the truth is that it cannot be spoken without being severe in judgement!
Thanks,
Dinesh V Divekar
From India, Bangalore
7879Islamic banking or otherwise, the main challenge of the humanity is to bridge gap between rich and poor. Day by day this gap is increasing and not decreasing. The gap is well evident in the member countries of Organisation of Islamic Conference (OIC).
Taliban rule in Afghanistan from 1996 to 2002, could not narrow down this gap. Not only in banking, but in all respects i.e. social, political, economical etc they had 100% Islamic rule. Their rule turned ordinary citizens into paupers.
What about India? Check the banks whose all the board members are Muslims. History of these banks (like any other bank) is fraught with scandals, frauds, corruption and so on. Bangalore's famous and very old bank is classic example. So forget about Islamic banking, let us find out whether we are able to run regular banks perfectly.
By the way JK Bank, whose head quarter is in Srinagar, has Gross NPA 1.61% <link updated to site home> What does it indicates?
You may feel my views are little uncharitable. But then trouble with the truth is that it cannot be spoken without being severe in judgement!
Thanks,
Dinesh V Divekar
From India, Bangalore
Dear Arif Shah,
The renowned Jurist and economist Nani Palkhiwala once said that, the rules of Economics are like rules of electricity. They are good servants, no doubt, but are very bad masters. This means as long as we rule over the economy, it serves us well, but when it starts ruling over us, it just ruins us.
As regards your query, I wish you please refer to two Nobel Award Winners incidentally both are related to the economics of underdeveloped countries. Dr. Amrtya Sen and Dr. Mohammad Yunus. It is difficult to understand the theory propounded by them in a single reading. But once you grasp the central idea, one starts getting some of it.
The idea of Islamic Banking is certainly commendable. Problem is not with the idea, but is with its administration. If the players of bank are prompt, fair and judicious, the game of banking survives in good and bad days also. But, if players are corrupt, then I need not explain what will happen to bank. There is no wrong with any law, principle, system or concept, wrong is with the players, administrators and implementer.
From India, Kolhapur
The renowned Jurist and economist Nani Palkhiwala once said that, the rules of Economics are like rules of electricity. They are good servants, no doubt, but are very bad masters. This means as long as we rule over the economy, it serves us well, but when it starts ruling over us, it just ruins us.
As regards your query, I wish you please refer to two Nobel Award Winners incidentally both are related to the economics of underdeveloped countries. Dr. Amrtya Sen and Dr. Mohammad Yunus. It is difficult to understand the theory propounded by them in a single reading. But once you grasp the central idea, one starts getting some of it.
The idea of Islamic Banking is certainly commendable. Problem is not with the idea, but is with its administration. If the players of bank are prompt, fair and judicious, the game of banking survives in good and bad days also. But, if players are corrupt, then I need not explain what will happen to bank. There is no wrong with any law, principle, system or concept, wrong is with the players, administrators and implementer.
From India, Kolhapur
In this world, everywhere the market economics is practiced. Market determines what is good or bad for the society. It is not the taste of individual entrepreneur but the taste of market. Which Islamic country fared well in their banking system but backed by states which have got wealth. In a secular country like us, open market policies will be the key for adoption and acceptability. not religion specific.
Today I saw a news item which state that Mukesh Ambani group forays into Chicken business, albeit, he is very strict vegetarian. He analysed the potential of market and forayed into that business keeping aside his personal taste.
Pon
From India, Lucknow
Today I saw a news item which state that Mukesh Ambani group forays into Chicken business, albeit, he is very strict vegetarian. He analysed the potential of market and forayed into that business keeping aside his personal taste.
Pon
From India, Lucknow
Dear Arifshah,
As I did not know much about the topic, I searched the web and found some information about the principles of Islamic Banking at <link no longer exists - removed>
Then I wanted to know if there are any studies comparing the two banking systems and found an excellent paper at
https://openknowledge.worldbank.org/...pdf?sequence=1
<link no longer exists - removed>
More links at https://www.google.co.uk/#q=normal+b...g+total+values
Now, I would be much obliged if you could read and digest the information at those sites and tell us whether your doubts are cleared and whether you think, it will work in Kashmir.
From United Kingdom
As I did not know much about the topic, I searched the web and found some information about the principles of Islamic Banking at <link no longer exists - removed>
Then I wanted to know if there are any studies comparing the two banking systems and found an excellent paper at
https://openknowledge.worldbank.org/...pdf?sequence=1
<link no longer exists - removed>
More links at https://www.google.co.uk/#q=normal+b...g+total+values
Now, I would be much obliged if you could read and digest the information at those sites and tell us whether your doubts are cleared and whether you think, it will work in Kashmir.
From United Kingdom
This is a different kind of topic, other than HR related, but interesting for reading as well updating knowledge. I tried to grab some information, what actually it is, however could not much understand, the positiveness in Islamic banking, if at all there is any.
1. Shall be thankful if any fellow reader writes, in simple language, only the Highlights, of this banking system (whether bad or good).
2. If at all, any financial institute/bank decides to operate under Islamic banking rules, whether it is allowed in India, since we are strictly operating under RBI Directives.
From India, Mumbai
1. Shall be thankful if any fellow reader writes, in simple language, only the Highlights, of this banking system (whether bad or good).
2. If at all, any financial institute/bank decides to operate under Islamic banking rules, whether it is allowed in India, since we are strictly operating under RBI Directives.
From India, Mumbai
Dear Abhay,
My paragraph-wise replies are given in italics:
1. Shall be thankful if any fellow reader writes, in simple language, only the Highlights, of this banking system (whether bad or good).
To know more about Islamic Banking, you may click here. "Good or bad" are relative terms and outcome depends on how it is executed. Nevertheless, as written in my first post, it is not a solution to bridge gap between rich and poor that is for sure.
2. If at all, any financial institute/bank decides to operate under Islamic banking rules, whether it is allowed in India, since we are strictly operating under RBI Directives.
In the present set-up, Islamic banking is not permitted as per RBI rules and regulations. However, RBI is working on it and in future it may be permitted. However, nothing can be said, whether existing banks can have exclusive products for Islamic banking or for new bank itself needs to be developed. Their outcome is worth watching but we will come to know it couple of years after commencement of their operations.
Thanks,
Dinesh V Divekar
From India, Bangalore
My paragraph-wise replies are given in italics:
1. Shall be thankful if any fellow reader writes, in simple language, only the Highlights, of this banking system (whether bad or good).
To know more about Islamic Banking, you may click here. "Good or bad" are relative terms and outcome depends on how it is executed. Nevertheless, as written in my first post, it is not a solution to bridge gap between rich and poor that is for sure.
2. If at all, any financial institute/bank decides to operate under Islamic banking rules, whether it is allowed in India, since we are strictly operating under RBI Directives.
In the present set-up, Islamic banking is not permitted as per RBI rules and regulations. However, RBI is working on it and in future it may be permitted. However, nothing can be said, whether existing banks can have exclusive products for Islamic banking or for new bank itself needs to be developed. Their outcome is worth watching but we will come to know it couple of years after commencement of their operations.
Thanks,
Dinesh V Divekar
From India, Bangalore
To answer Mr. Arif Shah's original question, suffice it to say that we in India are not replacing our existing system with Islamic banking or economic system. The current debate is about allowing those who want to opt for it, have that option. Current RBI rules do not permit other options. Hence, even if Islamic banking is allowed in future, those who do not want it are under no compulsion to opt for it. The impact of moving to Islamic banking will be felt only by those who voluntarily opt for it.
From India, Mumbai
From India, Mumbai
I found a couple of good articles on Islamic Banking at Islamic Banking: Problems and Prospects and The Future of Islamic Banking - Financial Institutions Article - A.T. Kearney
From United Kingdom
From United Kingdom
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