Islamic banking taking roots in India: Kerala launches interest free bank

Islamic banking taking roots in India: Kerala launches interest free bank

By Abdullah Edachalem Available at: http://www.khabrein.info/news/Islamic_banking_taking_routes_in_India__Kerala_launches_interest_free_bank_1299509784/

The Kerala government has taken revolutionary step launching the first ever interest-free Islamic banking institution in India. The Al-Baraka came into action once the Kerala High Court dismissed a couple of writ petitions which challenged the setting up of Islamic financial institution in a secular country like India.

The Islamic Bank is promoted by Kerala State Industrial Development Corporation (KSIDC) which has 11 percent stake in Al-Baraka Financial Services. The financial institution which operates on Islamic principles was held back as former union minister Subramanyam swami filed PIL challenging the move.

A division bench comprising Chief Justice J Chalameswar and Justice P R Ramachandra Menon dismissed the petitions claiming that the government proposed institution can follow the financial laws of the country as well as sharia rules.

The first of its like institution originally planned as government undertaking failed to get Reserve Bank clearance as well as court rulings. An internal working group of RBI whose report is yet be public held that such a form of banking is not possible given present regulations.

However the system had got a shot on the arm when Prime Minister Manmohan Singh asked the Reserve Bank of India to look into the prospects of introducing an interest-free banking system in the country. “There have been demands for experimenting with Islamic banking in the country,” Singh said.

And now the court cleared the way for setting up the financial system as a state supported private company. Al –Baraka is proposed to work as an interest free banking system in which a sharia board will account the power to decide on the mode of investments.

The company will invest the money only in Shariah compliant projects such as development and infrastructure projects, according to the promoters. The government plans to use the Al-Baraka resources for major projects like Southwest rail corridor and Coimbatore-Kochi corridor.

14 promoters of Al-Baraka have already contributed 40.2 million Indian rupees to the interest free financial institution which aims to mobilize around 400 billion rupees in total. The 17 member board of the directors is chaired by P. Mohammed Ali, veteran GCC based business man, and C.K. Menon as vice chairman.

The government initiative is widely appreciated by people of the state mainly by Muslims who account for close to 24 percent of the 32 million population. It has warmly welcomed by nonresident Keralites in which Muslims play 50% role in umbers as well as in the total remittance into the state.

However, a few people believe that its’ a government agenda to tap the huge amount of money from expatriate Muslims who are keeping away from interest-smitten financial systems. Political opposition has been blaming the CPI (M) led left government for their minority appeasement move.

But state government is firm on its stance projecting the example of Britain having an Islamic bank with seven branches where Muslims account for only 3% of population. They also claim that there are nearly 500 Islamic finance institutions worldwide, managing $1 trillion in assets.

The promoters of Al-Baraka proposed that Indian banking regulations would be changed to accommodate Islamic banking services. It would benefit the largest minority of the country as well as those who wish for interest-free banking services.

Regards
ZULKIFLI HASAN

Comments (43)

  • Gopakumar Reply

    done

    March 18, 2011 at 9:33 am
  • Parvez Khan Reply

    Salam,

    This is Parvez Khan a Muslim from Gujarat State of India seeking for Interest free loans, I was really happy when i came to know that Al – Baraka is going to be launched in Kerala, Kochi but I’m worried what about Gujarat ?

    Pls advise me if any possibility for us (Gujarat Muslims) to get these Interest Free loans !

    Thanks & Best Regards,
    Parvez Khan
    Bhavnagar – Gujarat

    June 13, 2011 at 8:07 am
  • murtaza Reply

    This is murtaza a Muslim from maharashtra State of India seeking for Interest free loans, I was really happy when i came to know that Al – Baraka is going to be launched in Kerala, Kochi but I’m worried what about maharashtra ?

    Pls advise me if any possibility for us to get these Interest Free loans !

    Thanks & Best Regards,
    murtaza ali gandhi
    phulari gali, mominpura,
    Akola

    June 28, 2011 at 7:25 am
  • Syed Mohammad Imran Reply

    Could i get the address and email of Al Barakh Financial Services, Kerala

    August 5, 2011 at 6:07 am
  • imtiyaz ahmed b k Reply

    can i get the details of functioning of this in India & hw to get an account with this bank. Iam a resident of Bangalore,
    regards
    imtiyaz ahmed b k

    August 12, 2011 at 4:43 am
  • shareque khan Reply

    sir mara nam shareque hain main aurangabad se hu mujhe hom loan hona magar intres free kya mari madat karo ga

    September 7, 2011 at 9:02 pm
  • SHAHZAD SHERALI KHAN Reply

    ASSALAMUALAIKUM
    Mashaallah
    Alhamdulillah
    I AM VERY HAPPY TO SEE THIS INTREST FREE BANKING SYSTEM
    I AM FROM BOMBAY
    PLEASE HELP ME TO OPERATE IN ISLAMIC FINANCE AND BANKING
    I AM IN TRADING BUSINESS
    I DO SMALL TURN OVER
    ONLY UP TO MY CAPITAL
    BUT I WANTS TO DO SOME BIG
    ONLY IN ISLAMIC MANNER
    PLEASE HELP ME
    ASSALAMUALAIKUM

    September 16, 2011 at 3:12 pm
  • hussain Reply

    loan for factory if your company is ready 2011 at 7:25 am

    This is Hussain a Muslim from chennai in tamil nadu State of India this is my E-mail ID jazgenius@gmail.com pl z reply me any thing is avail seeking for Interest free loans, I was really happy when i came to know that Al – Baraka is going to be launched in Kerala, Kochi but I’m worried what about chennai tamil nadu ?

    Pls advise me if any possibility for us to get these Interest Free loans !

    Thanks & Best Regards,
    Hussain, jazgenius@gmail.com

    October 2, 2011 at 3:34 pm
  • RAHMAN Reply

    I need a home loan based on islamic finance . Can you please assist me from where I can avail this loan in kerala

    October 10, 2011 at 10:35 am
  • Toufiq Ahmed Reply

    Assalamualaikum,

    Good to hear that India is launching the Intereset Free Islamic banking. May Allah Reward those who has taken the initiative.

    October 12, 2011 at 12:50 am
  • Abdul Rahman Reply

    Assalamualaikum I Good to hear that India is launching Intereset Free Islamic bank masha allah thans god I like islamic bank
    by Rahman Trivandrum

    November 2, 2011 at 4:49 pm
  • sahil khan Reply

    Asslamu alaikum
    my name is sahil khan from dharawad karnataka i want interest free home loan. i am working in a mnc company in dharawad plz rply me on my id sahil787@gmail.com
    khuda hafiz

    Reply

    November 21, 2011 at 11:05 am
  • imtiaz alam Reply

    i want to hav an interest fri loan for business

    December 9, 2011 at 5:34 pm
  • Abrar Qureshi Reply

    Assallwalkum
    I am abrar qureshi from Aurangabad Maharashtra , i left my job due to Haram from last 6 months ia m job less , and i found one bussiness in which i shot of some capital and i want intrest free loan .

    Kindly suggest how can i take benifit of ur bank .

    Thanks & regard
    Abrar qureshi
    Aurangabad MS
    Email id : Abrarqureshi99@rediffmail.com

    January 2, 2012 at 6:20 pm
  • mahamad isak mahamad Reply

    its very nice to hear about I Banking
    i want to open an account plz furnish the details
    Thanks

    January 9, 2012 at 9:18 am
  • abdul azeez Reply

    As salam alai kum to all my muslim brothers and mubarak to all of the people who have done there job to bring islamic bank in kerala , hope so insha allah it will spread all over india and other countrys….

    I am looking for loan on islamic way , kindly contact me back or mail me on my id abdulazeez_28@yahoo.co.in about the loan process ASAP as i am in very urgent for the same , pls update the complete details to get the loan and open an account wiht contact details….

    Allah hafiz

    abdul azeez
    Bangalore

    January 22, 2012 at 2:48 pm
  • Sahil Reply

    Salaam Alaikum brothers
    I am in need of Home loan to purchase a falt in AP . is this Islamic Bank is in functioning ? are people getting loan from this bank ? Can I from Andhra Pradesh get the loan ? Please reply me as soon as possible.

    January 30, 2012 at 10:49 am
  • Habeebur Rahman, Reply

    I am Habeebur Rahman from Tamilnadu and email id is habeebparas36@yahoo.co.in. let me know where can we open savings account of your bank

    February 6, 2012 at 5:32 am
  • khaleel Reply

    Alhadulillah. this initiation will definately benefit the muslims in India.

    February 29, 2012 at 9:39 am
  • Marzuq Reply

    Assalaam mu alaikum wa rahamathulahi wa barakathu!!

    Dear Brothers,

    i am marzuq from chennai i would like to get interest free home loan please let me know if any one of you aware

    email id : marzuq4peace@gmail.com

    March 13, 2012 at 4:56 pm
  • S.Mahaboob Reply

    Assalam Alaikum
    Dear brother and sisters

    I am very happy about the interest free loan. My name is S.Mahaboob i from krishnagiri DIstrict of Tamilnadu state. I need business loan to establish my office and business. If any body interest to provide me loan on the basis of interest free, please contact and help me,

    E Mail ID: Mahaboobkhanpa@gmail.com

    March 15, 2012 at 6:43 am
  • Syed Thasthagir Reply

    Assalam Alaikum.

    Please inform me about interest free loan details. I am in need of interest free business loan to do self employment. I am from Krishnagiri District of Tamil nadus state.
    My name is Syed Thasthagir
    EMail ID: Ssd@gmail.com

    March 15, 2012 at 6:47 am
  • syed ajaz ali Reply

    ASWK , JAzakallahi khair, These seems to be much relief to the greig stricken muslims in india.Iwould also like to be a member in your bank and avail interest free loans.

    June 5, 2012 at 11:06 am
  • shafeer Reply

    i like islam i know muhammed ilike it their movements he is historical light in ignorence

    June 17, 2012 at 2:04 pm
  • shafeer Reply

    u know muhammed u can know every thing to islam u should study better muhammed means …………………………………………………….

    June 17, 2012 at 2:07 pm
  • Musthak Reply

    Asalamu alikum, Am from tamil nadu chennai. Am looking for intrest free housing finance. Pls advice me. It good to here Al Baraka is in kerala. But am worried abt chennai muslims.

    June 22, 2012 at 4:50 pm
  • Naseruddin Nurani Reply

    I am Naseruddin Noorani from Guwahati, Assam
    I am very happy about the Islamic Banking in India. Can I open an account in Islamic Bank ?

    July 18, 2012 at 6:29 am
  • HARIS Reply

    it will be marked as one of the memorable movements in the indian banking industry.With best wishes and prayer

    August 7, 2012 at 10:04 am
  • muhammed bilal pasha Reply

    ASSALAMUALAIKUM Iam muhammed bilal from andhra pradesh . can I open an account in Islamic Bank ?

    September 2, 2012 at 7:48 pm
  • A. syed Hidhayathullah Reply

    Assalamu alaikum. i am very much happy about AL BARAKA. How can i open a account in islamic bank? And also i need business loan, plz help me

    September 7, 2012 at 11:58 am
  • Khwaja Aleemuddin Reply

    Assalamu Alaykum Barakallahu-Fee. Allah Barkat den aur apko aur apke supporters ke efforts ko Qubul karen Aameen.
    I am working in Islamic Research Centre (IRC) Aurangabad. As a Administrator since couple of years we are running Bait-ul Maal system. I expect moral support to implement Islamic Banking in India. Pls share ur experience & feel free for any sort of help in this field. kEEP IT UP. +91-9096104283. JazakAllahu Khaira.

    September 29, 2012 at 2:24 pm
  • ajmal Reply

    congratlation for gaining islamic banking and for implimenting islamic finance

    November 2, 2012 at 6:09 am
  • Syed Masrat Ali Reply

    My self Syed Masrat Ali
    Sir,I need intrest free loan for business.to established a manufaturing unit in Maharashtra .Sir,When you will launch this facility in Maharashtra ?
    masratak1_ali@rediffmail.com

    January 9, 2013 at 10:54 am
  • MASARAT ALAM BANDAY Reply

    Assalamuaalikum,
    It has given me grate happiness that finally your state govt.has allowed islamic banking in kerala state.I am from kashmir n m putting RK 600tpd cement plant at kashmir.The project has been approved by thr state govt.n central govt.The total cost of the project is Rs.120cr.I needs an islamic financial institute by which my project will get financed r a partner for joint venture.
    thanks
    MASARAT ALAM BANDAY
    for himalayan peak cements pvt.ltd
    09419777459,09797134366

    January 18, 2013 at 9:36 am
  • Gulfisha Ansari Reply

    Assalamualaikum,
    Iam from Mumbai, hv been trying to purchase a home from past 10 years but couldnt do it as the rate of interest is quite high, we are staying on rent basis and now even staying on rent has also become a challenge. I have gone through your site and was very happy and relieved to read that we can get interest free home loan. May allah bless you with health wealth and happiness, may allah give you success in this life and later life ameen. Please kindly help us with this problem, and forward the necessary requirements to avail your services.
    Thanx
    Looking forward for a postive reply from you.
    Allah hafiz
    Contact details : 09833454092
    email id: gulfisha_ansari@yahoo.com

    February 10, 2013 at 7:40 am
  • saifulla Reply

    Assalamaqum
    i am saifulla from maharastra
    i have bussiness of textile
    Now I am interested expand my bussiness so that i need finance around 1.50 crore.
    so plz help me
    plz call me- +91 9326317999
    or give ur contact number

    April 3, 2013 at 5:22 pm
  • MASARAT ALAM BANDAY Reply

    a a,i am putting a cement plant of 1000-2000tpd capacity in kashmir n i will be more innterested in islamic financing,if some body aware r interested kindly guide n help me.
    masarat alam MD
    HIMALAYAN PEAK CEMENTS PVT.LTD
    09419777459,09797134366

    May 6, 2013 at 1:24 pm
  • Abdul Rehman Reply

    Assalaam mu alaikum wa rahamathulahi wa barakathu!!

    Masha Allah, It’s been a very great privilage to our community…

    we are here to start a minority institution (Academy) and we are in need

    of intrest free loan (halal).

    please guide us to do our motto useful to our community…

    May 7, 2013 at 4:15 am
  • akbar Reply

    assalamwalekum sir, i want to have an intrest free loan for business. 08983110540

    May 29, 2013 at 12:30 pm
  • Habeeb Rahman. M Reply

    Assalamu alaikum (WARH)..
    I am habeeb rahman from tamil nadu and my mail id id : habeeb.ngr@gmail.com

    Alhamdulillah..
    Its very nice to hear.. Am very happy..

    Let me know where can i open savings account in your islamic bank.. I am very interest to open account in islamic bank.

    March 1, 2014 at 7:01 am
  • Mohammed shahid Reply

    I need loan i take one goods tempo

    March 19, 2014 at 11:30 am
  • salman Reply

    assalamualaykum mujhe ghar banane ke liye 100000 r ki bahut jarurat h agar apki bank mujhe lone dedegi to bahut meharbani hogi me inshaallah is karj ko 2 saal me ada kar dunga

    January 2, 2017 at 4:30 pm
  • salman Reply

    mera ghar u p me h me delhi me rehta hu mo n 7053486241

    January 2, 2017 at 4:31 pm

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