Tweak laws to allow Islamic banking: RBI

October 7, 2012
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Puducherry, October 7: The Reserve Bank of India (RBI) has written to the government to "restructure" or "amend" the laws to allow Islamic banking in India . Speaking at a local event, RBI governor D Subbarao said: "Islamic banking is allowed in many parts of the world, but the Banking Regulation Act of India does not conform to Islamic banking because it allows banks to borrow from and deposit money with the RBI on interest. But we are in correspondence with the government on how our laws can be restructured or amended so that they are in conformity with Islamic banking."

The RBI governor's statement comes on the back of a rising clamour to allow Islamic banking in India, which would fetch billions of dollars in investments from countries in the Middle East. Islamic banking is an interest-free system that is allowed in many developed economies, including European markets like France, Germany and the UK.

Law minister Salman Khurshid announced recently that he had written to the Planning Commission and RBI on the issue. RBI's stand on the matter so far has been that it is not possible within the current statutory and regulatory framework.

The entire RBI top brass — including deputy governors Subir Gokarn, K C Chakrabarty , Anand Sinha and H R Khan — are in Puducherry for a board meeting and were interacting with local students at an interactive event. The RBI team also stressed financial inclusiveness and the role that mobile banking can play in expanding the banking footprint in rural India. "Mobile penetration is large in rural India and we can leverage that technology for financial inclusion," said deputy governor Khan.

RBI is prioritizing electronic payments to reduce the economy's dependence on cash. "India is the fifth largest in cash-to-GDP ratio and we are taking a series of steps on both retail and wholesale payment's side to reduce this," said deputy governor Chakrabarty . One of the interventions , he said, was the decision to reduce merchant discount rates (MDR) drastically on debit cards to encourage usage. The RBI recently capped MDR in debit card transactions to 0.75% up to Rs 2,000 and 1% beyond Rs 2,000 — a sharp cut given that debit and credit card MDRs have been similar in India so far.


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March 27,2024

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The Enforcement Directorate has filed a money laundering case against Kerala Chief Minister Pinarayi Vijayan's daughter Veena Vijayan, her IT company and some others to probe a case of alleged illegal payments made by a private mineral firm to her and the company, official sources said Wednesday.

The agency has registered a case under the Prevention of Money Laundering Act (PMLA) and is expected to summon the people involved, the sources said.

The ED case has been booked after taking cognisance of a complaint filed by the Serious Fraud Investigation Office (SFIO), an investigative arm of the Union corporate affairs ministry, they said.

The case stems from an Income Tax Department investigation that alleged that a private company called Cochin Minerals And Rutile Ltd (CMRL), made an illegal payment of Rs 1.72 crore to Veena's company-- Exalogic Solutions-- during 2018 to 2019, even though the IT firm had not provided any service to the company.

The Karnataka High Court had last month dismissed a plea filed by Exalogic Solutions against the probe initiated by the SFIO.

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News Network
March 25,2024

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Congress leader Rahul Gandhi will face Kerala BJP chief K Surendran in the high-profile Wayanand constituency this Lok Sabha election.

Wayanad, a Congress stronghold, has been with the party since 2009. Mr Gandhi won it in 2019 and retained his Lok Sabha membership, having lost his Amethi seat to Union Minister Smriti Irani.

His rival this time, Mr Surendran, has the significant task of challenging the Congress-Left binary in Kerala's political landscape. Both the Congress and the Left are in a national alliance though they remain rivals in this southern state.

Surendran has contested all three Lok Sabha elections since 2009 and also four Assembly elections. In 2021, he contested from Konni and Manjeshwar seats simultaneously. 

In 2019 general elections, Mr Surendran finished third in Pathanamthitta constituency behind the Congress and the Left. He had lost the 2016 assembly polls from Manjeswaram by merely 89 votes. He also contested a bypoll in 2019, but lost it as well.

He was appointed to head the BJP Kerala unit in 2020 and became the face of the protests against the entry of young women into Sabarimala years ago.

Mr Surendran, who is from Kozhikode, figured in the BJP's fifth candidates' list, which also named actor Kangana Ranaut and former Calcutta High Court judge Abhijit Gangopadhyay.

Wayanad is the second Kerala seat to see a battle of titans after Thiruvananthapuram, where Union Minister Rajeev Chandrasekhar will face the three-time Congress MP Shashi Tharoor.

The BJP has also fielded former vice-chancellor of Sree Sankara Sanskrit University K S Radhakrishnan from Ernakulam and actor-turned-politician G Krishnakumar from Kollam. T N Sarasu, a former educator, will contest from Alathur in Palakkad.

The highlight of the BJP's fifth list was the electoral debut of actor Kangana Ranaut from Mandi in her homestate Himachal Pradesh. The list, which named 111 candidates in 17 states, also featured new joinees like industrialist Naveen Jindal and Mr Gangopadhyay.

Mr Gangopadhyay, who joined the BJP recently after taking voluntary retirement, is the first former judge to join electoral politics. He has been fielded from Tamluk in Bengal and will face Trinamool's Debangshu Bhattacharya, a youth leader who had penned the party's "Khela Hobe" song.

Varun Gandhi, a sitting MP from Pilibhit, has been dropped and his seat has gone to Jitin Prasada, who switched to the BJP from the Congress in run-up to the election. His mother Maneka Gandhi has been fielded from her current seat, Sultanpur.

Actor Arun Govil, who played Ram in popular TV series Ramayan, will contest from Meerut. Union ministers Ashwini Kumar Choubey and General VK Singh too were part of the list.

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March 17,2024

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New Delhi: The Election Commission on Sunday made public fresh data on electoral bonds, which it had submitted in sealed covers to the Supreme Court and was later asked to put it in public domain.

These details are believed to be pertaining to the period before April 12, 2019. Electoral bond details after this date was made public by the poll panel last week.

The BJP encashed electoral bonds totalling Rs 6,986.5 crore; maximum Rs 2,555 crore received in 2019-20, as per the EC data.

The Trinamool Congress received Rs 1,397 crore through electoral bonds, second largest recipient after BJP, as per the EC data.

On the other hand, the Congress redeemed a total of Rs 1,334.35 crore through electoral bonds.

DMK received Rs 656.5 crore through electoral bonds, including Rs 509 crore from lottery king Santiago Martin's Future Gaming.

BJD encashed electoral bonds worth Rs 944.5 crore, YSR Congress Rs 442.8 crore, TDP Rs 181.35 crore.

Political parties had filed data on electoral bonds in sealed cover as directed by the Supreme Court's interim order dated April 12, 2019, the poll panel said in a statement.

"Data so received from political parties was deposited in the Supreme Court without opening sealed covers. In pursuance of the Supreme Court's order dated March 15, 2024, the Registry of the Supreme Court has returned physical copies along with a digitized record of the same in a pen drive in sealed cover. The Election Commission of India has today uploaded the data received in the digitized form from the registry of the Supreme Court on electoral bonds on its website," EC said.

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