By Syed Zahid Ahmad,
Thanks to Shri K. Rahman Khan for bringing sensitive issue before the Congress party as a sensitive political agenda to being justice among Muslims. Now we like to extend all possible support to him for your endeavor. Nevertheless we like to request the Congress (I) political party that please don’t pitch for Islamic banking, but term it as Participatory banking to make it secular acceptable to all religious communities including Muslims.
It is important to maintain secular decorum of India. The economic merits and demerits of the Participatory banking and finance should be exclusively discussed in the forum of Economists before including it in the electoral agenda of Congress for Lok Sabha Election 2014. The Hindus and Muslims would clearly understand that Participatory banking would be based on Shariah Principles; so capable to fulfill the financial need of Muslims in light of Islam along with maintaining secularism in Indian financial sector. Please don’t raise it on the name of religion, but put it forward as an alternative banking and finance model suitable to meet the financial needs, capable to resolve economic challenges and maintain secular decorum of India. After all SEBI has allowed Islamic Finance without terming it as Islamic because the finance based on equity is driven from Islamic ethics. Similarly if RBI allows equity based banking or participatory finance, it would be secular by nature equally acceptable and beneficial to all religious communities including Muslims.
If provided an opportunity to discuss and debate among the Economist, experts on Participatory finance can help all realize the significance of Participatory banking and finance to reduce poverty, economic imbalances, inflation, rupee devaluation, fiscal deficit and loss in foreign reserves. This model will help India accelerate the most important task of financial inclusion, foreign direct investments, build rupee value with better economic growth and capital inflows from abroad and within the nation among different segments and section. But please don’t term it as Islamic Banking because no Islamic scripture supports the term Islamic Banking nor any religious school (institution) has demanded for it. Please consider it as alternative secular banking and finance model because it will be equally acceptable and beneficial to all religious communities including Muslims.
If congress introduces Participatory banking and finance in a secular manner, they would succeed in pleasing Muslims without creating any sense of anguish among anti Muslim voters. Hope Congress will not spoil the issue terming it Islamic (with an intention) to put in back in the cold bag; rather dare to solve this sensitive issue in a secular manner so as to make it equitable acceptable and beneficial to all religious communities including Muslims.
It would help us revert the financial loss to Muslims due to anti Islamic banking mechanism, correct the fiscal deficit by allowing Shukuk for infrastructure projects, allowing flow of finance from richer to poor with system of sharing financial risks and rewards among stakeholders; thus promoting entrepreneurship among the poor and boosting income and employment in MSME sector.
It would help India build a level playing economy for the rich and poor to gain economic advantages with sharing financial risks and rewards among the stakeholders instead of helping the capitalists to exploit the poor.
Is Congress (I) really interested to open the gateway of economic development for the poorer section by socializing the financial sector including banking? If yes, then it would be the most appropriate and most sensible reply to the slogan of development led by BJP under leadership of communal leader called Narendra Modi. Congress needs to prove that India is meant to provide economic justice along with maintaining secularism and socialism in the nation.
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Syed Zahid Ahmad is Founder – Economic Initiatives. Tel. – 091 9869 814 113 / 9769 249 406
Email – economicinitiatives@gmail.com
Website:- http://www.economicinitiatives.com/Zahid.htm