Governor Reserve Bank of India (RBI), Dr D. Subbarao today said RBI will not create any huddle, if Government of India allows Islamic Banking in the country.
Addressing a press conference here, after the conclusion of Central Board of Directors (CBD) meeting, the RBI Governor said that different Banks operating in the state will increase their Credit Deposit Ratio (CDR) from existing 36.5 percent to 40 percent so that more loans would be given to the people who require it.
The RBI Governor also said that Chief Minister Omar Abdullah has assured them that District Industrial Centers and Rural Self Employment Training Institutes will held the banks to give loans to the interested parties.
The RBI Governor maintained that they have received several proposals from various people including some member Parliaments that Islamic Banking should be started in the country and RBI is studying these proposals.
“Let me clear to you. It is not RBI, which is standing in the way of starting of Islamic Banking in the country. It is the government which has to determine, whether to allow the Islamic Banking or not,” he said.
Dr D Subbarao also said if the government allows the Islamic Banking, then they have to enact a new law. “Various people including some MPs gave us proposals. We are studying them. However, we are not any authority to take any decision. It is the government which has to take the decision,” he said.
He stated that RBI regulations and Sharia law cannot run simulations in the country. “Our banks are functioning under RBI regulations. They functions under rate of interest system. Under Sharia Law, there is no rate of interest system. Different countries have adopted the Sharia system, but India banking system is working under RBI regulations,” he said.
There is a growing demand by varous separatist parties, particularly Mirwaiz Umar Farooq That Islamic banking should be started in the state. But there was no response from the RBI and from the government. Mirwaiz demanded that Jammu and Kashmir being a Muslim majority state, there should be an Islamic banking system in the state.
The RBI Governor also said that they have set up a target that every house should have al least one bank account so that the family could benefit from the modern banking system.
“A population less than 20,000 to any village should have a banking facility. We are working on the target and we are hopeful that our banks will achieve the target,” he said.
He said that RBI is also trying to introduce plastic currency in the country and save expenses on paper currency.
“The RBI is introducing innovative measures. The printing paper currency is costly and costs us more and it has less life. Therefore, RBI is trying to introduce plastic money. We will introduce it on trial basis and see if it is successful,” He said.
He also said that plastic currency was introduced 15 years ago but that time people resisted and did not accept it. “But it is right time to introduce it.”
The RBI Government said for the last two days they conducted the central boad of directors meeting in Srinagar and held a meeting with Governor, N N Vohra, Chief Minister Omar Abdullah and JK Bank Chairman, Mushtaq Ahmad and others.
The others who were present in the board of directors meeting includes Kiran Karnik, Prof M.V. Rajeev Gowda, Y.H. Malegam, Prof Dipankar Gupta, Dr Najeeb Jung, dr Indira Rajaraman and Prof Damodar Acharya.
http://www.kashmirtimes.com/newsdet.aspx?q=16481
Addressing a press conference here, after the conclusion of Central Board of Directors (CBD) meeting, the RBI Governor said that different Banks operating in the state will increase their Credit Deposit Ratio (CDR) from existing 36.5 percent to 40 percent so that more loans would be given to the people who require it.
The RBI Governor also said that Chief Minister Omar Abdullah has assured them that District Industrial Centers and Rural Self Employment Training Institutes will held the banks to give loans to the interested parties.
The RBI Governor maintained that they have received several proposals from various people including some member Parliaments that Islamic Banking should be started in the country and RBI is studying these proposals.
“Let me clear to you. It is not RBI, which is standing in the way of starting of Islamic Banking in the country. It is the government which has to determine, whether to allow the Islamic Banking or not,” he said.
Dr D Subbarao also said if the government allows the Islamic Banking, then they have to enact a new law. “Various people including some MPs gave us proposals. We are studying them. However, we are not any authority to take any decision. It is the government which has to take the decision,” he said.
He stated that RBI regulations and Sharia law cannot run simulations in the country. “Our banks are functioning under RBI regulations. They functions under rate of interest system. Under Sharia Law, there is no rate of interest system. Different countries have adopted the Sharia system, but India banking system is working under RBI regulations,” he said.
There is a growing demand by varous separatist parties, particularly Mirwaiz Umar Farooq That Islamic banking should be started in the state. But there was no response from the RBI and from the government. Mirwaiz demanded that Jammu and Kashmir being a Muslim majority state, there should be an Islamic banking system in the state.
The RBI Governor also said that they have set up a target that every house should have al least one bank account so that the family could benefit from the modern banking system.
“A population less than 20,000 to any village should have a banking facility. We are working on the target and we are hopeful that our banks will achieve the target,” he said.
He said that RBI is also trying to introduce plastic currency in the country and save expenses on paper currency.
“The RBI is introducing innovative measures. The printing paper currency is costly and costs us more and it has less life. Therefore, RBI is trying to introduce plastic money. We will introduce it on trial basis and see if it is successful,” He said.
He also said that plastic currency was introduced 15 years ago but that time people resisted and did not accept it. “But it is right time to introduce it.”
The RBI Government said for the last two days they conducted the central boad of directors meeting in Srinagar and held a meeting with Governor, N N Vohra, Chief Minister Omar Abdullah and JK Bank Chairman, Mushtaq Ahmad and others.
The others who were present in the board of directors meeting includes Kiran Karnik, Prof M.V. Rajeev Gowda, Y.H. Malegam, Prof Dipankar Gupta, Dr Najeeb Jung, dr Indira Rajaraman and Prof Damodar Acharya.
http://www.kashmirtimes.com/newsdet.aspx?q=16481
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