HT Editorial |
| Blog | Posted By: hindtodaynews on:7/4/2012 11:44:23 PM |
The Law Minister, Mr Salman Khurshid is quite hopeful that the RBI's top economists would look at the 'Islamic Banking' issue afresh and soon come up with its views after deciding on the technical issues.
Mr Khurshid said it was difficult to fit in Islamic banking with the existing regulations, as the very concept of
debt and equity was very different in Islamic banking.
So, is there any workaround ? If yes - Why Western Countries and America are not adopting the same by getting loan from Saudi Arabia in stead of China or BRIC countries ?
He said - Non-banking financial institutions are prevalent now and are accepted, but some ambiguities have to be addressed before they can take up Islamic finance.
A bank would be attractive if it offers loan at lower interest. But, interest depends on credit rating of country.
Per Mr. Khurshid, Islamic banking is an interesting and compelling idea,if you look at the sovereign wealth funds of the Gulf region and the fact that we need much more money to finance our infrastructure needs.
What do you think ?
Is Islamic Banking an option where they don't charge any interest ?
How banks would survive or grow if their case reserve is spent on infrastructure or housing projects ?
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