By TwoCircles.net Staff Reporter,
New Delhi: Syed Zahid Ahmad, Founder of Economic Initiatives, has written a letter to Shri K. Rehman Khan, Minister for Ministry of Minority Affairs as rejoinder to a meeting held with him earlier, and emphasizing on the restructuring of National Minorities Development & Finance Corporation (NMDFC).
In the letter he thanked the Minister for discussion over ‘restructuring of NMDFC’ and scope of introducing ‘Windows for Interest Free Banking in India’. While appreciating efforts to restructure NMDFC so that corrupt practices can be checked and the funds through NMDFC can be appropriately utilized and refunded back, he also expressed dissatisfaction in appointing banks as channelizing agency for NMDFC and discarding community based financial institution, since the banks are often found to be ignoring the Muslim community.
“Appointing banks as channelizing agency for NMDFC (and disallowing societies and NBFCs) would mean that we target to serve less than 50% national population and less than 10% Muslim population who are connected with banks,” he wrote.
He hence demanded, “If the Government of India intends to say that the PM 15 point programme has helped eliminating any sort of discrimination in extending finance to Muslims in India, the figures on community wise credits and deposits at different scheduled commercial banks should be published periodically and put on public domain.”
He added, “Unless demand for financial services is improved, mere increase in supply of credit through banks cannot promote financial inclusions of Muslims. Genuine demand for finance among Muslims cannot be build unless we allow participatory banking model wherein Muslims can transact banking activities without indulging into ‘interest’ which is strictly prohibited in Islam.”
Pitching for the interest free banking, he wrote, “We accept that Interest free banking has yet to prove its safety standards. But that requires involvement of qualified and experienced professionals dealing in risk management of assets. Unprofessional management in a framework with number of regulatory hurdles for interest free banking has caused failures in past."
You are supposed to represent the Government view point, but the community holds lot of expectations from you and hope that you would always do justice with the community striving hard to get faith based financial services, he added, urging him to “arrange healthy discussion over the issue between RBI, and financial experts serving the community under adverse regulatory conditions for interest free banking to get best possible way out under present regulatory framework.”
Zahid Ahmad has hence urged the Minority Affairs Minster to constitute a special task force or working group in MoMA to “improve its working efficiency with regard to prepare and execute genuinely sound annual plans, optimally utilize allocated budgetary resources, help achieving financial inclusion of Muslims and to coordinate with inter ministerial task forces for better results.”