My View on "Participatory Banking instead of Islamic Banking":
Among various modes of financing, lease financing and hire purchase financing are two products which follow very strong Islamic Banking tenets. These products are very familiar to Indian Bankers and users of banking services in the country. So, Islamic Banking can fill a void in this segment of banking. But, I do not agree to the idea of bringing Islamic Banking under the name of Participatory Banking. One, there are no instances where Indians who use banking services in India have shown aversion to banks opened with names of any community. Catholic Syrian Bank, Karur Vysya Bank, South Indian Bank, Federal Bank, Tamilnadu Mercantile Bank and others are there for decades providing banking services to the people across the length and breadth of the country. Two, if Islamic Banking is allowed in India, it would rather attract huge flow of FDI in banking sector particularly from UAE countries and improve the economy of the country as our CAD is is dragging the economy to the new level. So, this is the right time to allow Islamic Banking in its true form.
- S.Santhanam, Pune
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