|Dr.Mohammad Manzoor Alam|
The Reserve Bank Governor Mr D. Subba Rao’s recent announcement constitutes a significant advance in the field of Islamic banking and finance in India, which has been a cherished goal for all of us, and for the attainment of which the Institute of Objective Studies has worked tirelessly over the last quarter century.
Although in Islamic finance we have already made substantial advance in India in terms of growing acceptance of Shariah-compliant investments and other Shariah-compliant financial services and products. The IOS, with the collaboration of financial consultants Estwind, developed a Shariah index of thousands of companies in India, which has helped pious Muslim investors to invest safely.
After all these years of struggle and relentless toil, the Governor of Reserve Bank of India, announced late last week that he had formally written to the Government of India to restructure or amend the laws to allow Islamic banking in India.
As far as the change in the law is concerned, I have met Mr Salman Khurshid, India’s Law Minister, several times in last few weeks to impress upon him the need to initiate the necessary measures. He has written to the Planning Commission of India and RBI as well as consulted with the top level of the federal government on the issue. Being among the four most powerful ministers in the cabinet of federal government, he has assured me of help, and has worked on that assurance.
God must be thanked and the struggle continued. It is a long story headed for a happy end.
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