Plea on Islamic Banking in J&K: HC asks finance ministry, RBI to reply

The Forum also seeks direction to the J&K Bank to take immediate steps for the opening of Shariah-compliant windows to accomplish the objective of mass level participation in Shariah Banking.

D A RASHID
Srinagar, Publish Date: Jul 12 2018 12:29AM | Updated Date: Jul 12 2018 12:29AM
Plea on Islamic Banking in J&K: HC asks finance ministry, RBI to reply

The High Court has granted four more weeks to the Union Finance Ministry as well as Reserve Bank of India to respond to a Public Interest Litigation (PIL) seeking the introduction of Islamic Banking in Jammu and Kashmir.

A division bench of acting Chief Justice Alok Aradhe and Justice Dhiraj Singh Thakur granted more time to the Union Finance Ministry and Reserve Bank of India for the reply after the assistant solicitor general of India, Tahir Shamsi, made a submission in this regard.    

On behalf of Jammu and Kashmir Bank, senior advocate, Zaffar Shah told the court that the bank has unnecessarily been made a party as it doesn’t see a role for itself in Islamic banking. He, however, said that the bank will file response with regard to its Non-Performing Assets (NPAs).    Jammu and Kashmir People’s Forum, a non-government organization, wants J&K Bank Limited to place before the court the entire details of NPAs and the steps taken for the recovery of the outstanding amount in NPAs, saying the same is public money which cannot be allowed to be misappropriated either by the account holders or by the management of the bank.

The Forum also seeks direction to the J&K Bank to take immediate steps for the opening of Shariah-compliant windows to accomplish the objective of mass level participation in Shariah Banking.

On March 20 this year, the Court had issued notices to the Union Ministry of Finance, RBI, J&K government and the J&K Bank asking them to respond to the PIL.

 “In 2013, Ministry of Finance had requested RBI to give its considered opinion regarding feasibility of introducing Islamic banking in India after examining all the legal, technical and regulatory issues relating to the matter. Accordingly, an Inter- Departmental Group (IDG) on Islamic Banking was constituted in RBI and the report prepared by the Group has been submitted to the Government in February 2016,” pleads the Forum. 

“RBI has also forwarded a Technical Analysis Report based on the recommendation of the Group to the Government in December 2015.”

On the basis of the recommendation of the IDG, the Forum said, it has been suggested by the RBI that a few products similar to conventional banking products may be considered for introducing through Islamic Window of the conventional banks after necessary notification by the Government.

“Since the respondents have failed to adhere to the reports of their own committees and expert groups in materializing the recommendations for creation of Shariah Compliant windows, it was left with no other option but to seek intervention of the court,” the Forum pleads. 

The majority of the citizens in Jammu and Kashmir, it says, is Muslim by faith and thus has a constitutional right to enjoy all avenues of development provided the same do not contravene the article of their faith.

Latest News

  1. Girl suffers cardiac arrest after brother allegedly picked up army in south Kashmir
  2. Girl suffers cardiac arrest after brother allegedly picked up army in south Kashmir
  1. Cabinet approves increase in honorarium for Anganwadi and Asha workers
  2. Cabinet approves increase in honorarium for Anganwadi and Asha workers
  1. Watch | Doors of Holy Kaaba opened for Pakistan PM Imran Khan
  2. Watch | Doors of Holy Kaaba opened for Pakistan PM Imran Khan
  1. Cabinet nod to extension of special package for Jammu and Kashmir
  2. Cabinet nod to extension of special package for Jammu and Kashmir
  1. Provide adequate security to candidates contesting civic elections: Guv Malik
  2. Provide adequate security to candidates contesting civic elections: Guv Malik
  1. India, Pakistan Asia Cup cricket match: NIT orders closure of shops on campus
  2. India, Pakistan Asia Cup cricket match: NIT orders closure of shops on campus
  1. ICC opens probe into Myanmar's treatment of Rohingyas
  2. ICC opens probe into Myanmar's treatment of Rohingyas
  1. Pakistan court suspends jail terms of Sharifs
  2. Pakistan court suspends jail terms of Sharifs
  1. Watch | Jammu and Kashmir Congress to participate in upcoming municipal, panchayat polls: G A Mir
  2. Watch | Jammu and Kashmir Congress to participate in upcoming municipal, panchayat polls: G A Mir
  1. Two BSF men, civilian driver killed in Banihal truck accident
  2. Two BSF men, civilian driver killed in Banihal truck accident
  1. UP ATS arrests BSF soldier 'honey-trapped' by ISI
  2. UP ATS arrests BSF soldier 'honey-trapped' by ISI
  1. BSF man's throat slit on Jammu border; high alert sounded along border
  2. BSF man's throat slit on Jammu border; high alert sounded along border
  1. Watch: Police use batons, tear gas shells to foil Muharram procession in Kashmir capital
  2. Watch: Police use batons, tear gas shells to foil Muharram procession in Kashmir capital
  1. Police detain Shia mourners to foil Muharram procession in Kashmir capital
  2. Police detain Shia mourners to foil Muharram procession in Kashmir capital
  1. Cabinet approves ordinance on triple talaq
  2. Cabinet approves ordinance on triple talaq
  1. Lorries crash into fruit shops after collision in central Kashmir
  2. Lorries crash into fruit shops after collision in central Kashmir
  1. Unimpressive India beat spirited Hong Kong by 26 runs in Asia Cup
  2. Unimpressive India beat spirited Hong Kong by 26 runs in Asia Cup
  1. Pakistan PM Imran Khan in Saudi Arabia on maiden foreign visit
  2. Pakistan PM Imran Khan in Saudi Arabia on maiden foreign visit
  1. Insurance for civil poll candidates: Mirwaiz dubs it as bait to entrap people
  2. Insurance for civil poll candidates: Mirwaiz dubs it as bait to entrap people
  1. Srinagar held hostage by rulers to disallow Muharram procession: Mirwaiz
  2. Srinagar held hostage by rulers to disallow Muharram procession: Mirwaiz
  1. Kashmir police issues route advisory in view of curbs in Srinagar
  2. Kashmir police issues route advisory in view of curbs in Srinagar
  1. Restrictions in Kashmir capital to prevent Muharram processions
  2. Restrictions in Kashmir capital to prevent Muharram processions
  1. TB remains world's deadliest infectious disease: WHO
  2. TB remains world's deadliest infectious disease: WHO
  1. Five million Yemeni children face famine: NGO
  2. Five million Yemeni children face famine: NGO
  1. Israel violates Syrian sovereignty: Putin tells Netanyahu
  2. Israel violates Syrian sovereignty: Putin tells Netanyahu
x
This site uses cookies to deliver our services and to show you relevant news and ads. By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Service.That's Fine