Looking through the 'Islamic window': RBI's suggestion draws mixed reactions

From left Raihan Shaikh Saeed Khan Aamir Edresy and Amzad Shaikh discuss the RBIrsquos Islamic window proposal PicSuresh KarkeraA week after the government dropped its demonetisation bombshell hoping to bring black money back into the countryrsquos financial system the RBI proposed the idea of an lsquoIslamic windowrsquo at banks to ensure lsquoinclusion of those sections of society excluded because of religious reasonsrsquo The suggestion however has drawn mixed reactions While members of the community feel the move could be both beneficial and detrimental banks are fervidly opposed to the central bankrsquos proposalMaulana Saiyad AtharaliBoth good and badThe community feels that the Islamic window will not just create more transparency but take money out of the control of a few and disperse it to those in need Maulana Saiyad Atharali a noted leader of the community said ldquoAn equitybased system where the bank and customer work together will bring in transparencyrdquoThough some fear religious disputes over the window the community begs to differ ldquoIf we stop looking at everything from the religious point of view things will be different Around 70 of the countryrsquos Muslims donrsquot register with banks because for us making more money through interest is unethical and is hence treated as haram This step will not just bring those 70 but also Islamic banks in Kuwait Dubai and other gulf countries into the banking system Foreign capital is a big reason why the government has proposed it nowrdquo said Aamir Edrasy president of the All India Muslim OBC AssociationWhile Sharia forbids interest in any form some community members said for the kind of system and society we live in an interest of 5 per cent called the lsquotolerablersquo interest is allowedSharia says butThe Bohri community which has a large business community supports the RBIrsquos decision ldquoThe RBI should certainly implement this plan The late Syedna Dr Mohammed Burhanuddin had launched the Burhani Qardan Hasana scheme for Dawoodi Bohras in the 1960s Under this the account holders and those running the scheme share all profits and lossesrdquo said Zoeb Bootwala activist and a member of the Bohri communityNaysayersMumtaz Shiekh a wellknown CORO Committee of resource organisation activist has trashed the idea saying opening a window is not the solution for inclusion ldquoThere are people from slum pockets of Mumbai who find it extremely difficult to even open a bank account Bankers come to the middleclass to open accounts but the poor have to go to a bank 10 times to open one account If you canrsquot solve that problem how will this even work I donrsquot believe it when community leaders say 70 of Muslims donrsquot open bank accounts I am witness to a bank being flooded by Muslims when it was opened at Govandi They are not averse to the interest system Grassroot problems should be solved first before proposing such ideasrdquo Sheikh saidFarhat Ali from the NGO Majlis said ldquoThe idea is a good one but this government proposing it just feels wrong Muslims donrsquot trust this government at allrdquoNo need for word IslamicThough the Islamic window follows the guidelines of Sharia Muslims donrsquot want the window to be tagged lsquoIslamicrsquo Advocate Rashda Sohail Ainapore who has studied Islamic banking in depth said ldquoAs long as it takes care of the needs of the people why does it have to be called anything This window is a must in present times The 150 million Muslims out of the system will start coming in with the money which in turn will prove lucrative for the entire countryrdquoBharat Nayak a Khar resident said ldquoIndian texts also talk about an interestfree economy Why name it Islamic window thenrdquoAt the end of the day if it is a beneficial plan the public will not hesitate to go to an Islamic window believes Subhajeet Mukherjee from Charkop ldquoI would not bother which religionrsquos framework it is in as long as it keeps my business alive and gives me benefitsrdquoThumbs down from banksBanks however have panned the idea ldquoThe RBI hasnrsquot communicated this to us yet but we are sceptical about whether this will workrdquo said a State Bank of India official A senior official of Bank of India said ldquoThe idea is against secularism If we keep allowing this more and more religions will want their personal laws to be implemented And this would only put pressure on banks But if the RBI tells us we will have to implement itrdquoWhat the RBIacircu00c2u0080u00c2u0088has proposedThe Reserve Bank of India RBI recently wrote to the Finance Ministry proposing the opening of an lsquoIslamic windowrsquo in conventional banks for the gradual introduction of Shariacompliant or interestfree banking in the country The introduction of fullfledged Islamic banking with profitloss sharing complex products may be considered at a later stage on the basis of experience gained in course of time the RBIrsquos letter said