Interest-free banking should compliment existing system: Prez JK Bank
GK NEWS NETWORK
Srinagar, June 6: The new global economic dynamics and the changing market forces have led to the emergence of interest-free banking as one of the best alternatives.
This has come to India in the shape of a serious discourse. If allowed in India, it will have a far-reaching impact on the banking landscape. However, cautions in its introduction demand that it should be seen and projected as architecture that will supplement and compliment, without compromising on its basic format and principles, the existing system rather than perceived as posing a challenge to it.”
This was stated by Tafazal Hussain, President & Chief Strategist of the J&K Bank in his presidential address at the valedictory function of the three-day International Conference on “Interest Free Institution Mechanism in Banking/ Insurance”, organized by Institute of Objective Studies (IOS), New Delhi in collaboration with University of Kashmir here.
Among other dignitaries present on the occasion included Prof Syed Fayaz Ahmad, Registrar, University of Kashmir, Prof. Manzoor Alam, Chairman, Institute of Objective Studies (IOS), New Delhi, Prof. Z.M Khan, Secretary General, IOS, Prof. Musadiq Amin Sahaf, Dean, Faculty of Commerce & Management, University of Kashmir, Prof. Nazir Ahmad Nazir, Head, Department of Business & Financial Studies, University of Kashmir.
Emphasizing that the voices for introduction of interest-free banking mechanism are gaining momentum owing to its comprehensiveness and inclusiveness, Tafazal said, “People from across socio-economic and religious spectrum advocate it for it does not hit any existing system, values or religion. It is interest free, not charity. It ensures real participation in business, in the sense that the depositor or an investor is partner to both profits as well as losses”.
Underlining the need to project and publicise this new system in its holistic perspective, he said: “We must not just claim, but ensure that it is efficient, ethical and above all fair to all participants and to the principles of the system itself and acceptable to the Banking Regulator of the country. Mobilising of deposits and deployment of funds should conform to the obligatory norms. Besides, institutions adopting such architecture will, as and when allowed in the country, have to ensure productive end use of the funds deployed, which is possible through a reliable procedure of Know Your Customer (KYC)”.
Maintaining that J&K Bank is at the heart of banking in the state of J&K, Tafazal informed the gathering that the bank holds a huge 71% share in the lending in J&K while all other banks put together, operating in the state, contribute just 29% to the credit dispensation volumes.
He said that what he personally feels J&K Bank could probably be among first few banks to initiate steps to have an architecture of interest-free financial mechanism “as and when banking regulator allows such an endeavor and all legal bottlenecks are cleared.
Emphasizing that the Bank’s vision of Corporate Social Responsibility underlines a strong commitment to the objective of equitable socio-economic empowerment, Tafazal said that the Bank continues to immensely contribute towards health, education, preservation and promotion of art, heritage, culture, art, craft, environment, sports etc. A positive and business like outlook towards settlements and remissions, a philanthropic spirit and a CSR policy that calls for equitable socio-economic empowerment is based on the Bank’s philosophy of sharing profits with the society and the stakeholders. And this is probably something that the new system advocates and practices”, he stressed.
Lastupdate on : Mon, 6 Jun 2011 21:30:00 Makkah time
Lastupdate on : Mon, 6 Jun 2011 18:30:00 GMT
Lastupdate on : Tue, 7 Jun 2011 00:00:00 IST
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