{ Dr. Mohammad Manzoor Alam } After years of effort the struggle for having a full-fledged Islamic banking system in India met with a moderate measure of success when the State Bank of India announced last week that it would launch a Shariah-compliant mutual fund in December.
It is for the first time that a state-owned bank is to start an Islamic financial instrument in India. The SBI has got both the Reserve Bank of India’s and the government’s permission for it. Happily, Muslim leaders have already welcomed it.
Although Shariah-compliant investments are already doing well in India, SBI’s move is the first such step coming from a state-owned bank. In 2013, the Bombay Stock Exchange launched its first Shariah Index, but IOS had launched possibly the first Shariah-compliant Index in 2008 in collaboration with financial consultants Eastwind.
This is not enough for proper Islamic banking in India, but an inclusionary move for non-interest financial operations. Islam does not approve of interest taking or paying. Scholars associated with IOS have written hundreds of well-researched articles and dozens of books arguing for interest-free banking and financial operations.
The IOS, in collaboration with Indo-Arab Economic Cooperation Forum, organised a two-day conference at Vigyan Bhavan, New Delhi, where leading bankers and fund managers from other countries came together. Besides, Indian and foreign government leaders interacted. Then Prime Minister of India, Mr. Manmohan Singh, visited to chat with the guests.
At the two-day international conference on “Indo-Arab Relations: Partnership in Development” these issues were part of the agenda. The then Finance Minister of India, P. Chidambram, and senior government officials participated in the proceedings.
At the IOS-organised two-day international conference on “Participatory Banking for All: A Business Proposition” stalwarts like Vice-President Hamid Ansari; then Deputy Chairman Rajya Sabha K. Rahman Khan; former Chief Justice of India AM Ahmadi; former Malaysian Deputy Prime Minister Anwar Ibrahim; MBN Rao, Chairman Indian Banks Association, and other dignitaries and bankers from India and abroad participated. The conference was inaugurated by the Union Finance Minsiter P. Chidambram.
Similar conferences were organised over the years in New Delhi on June 14, 2008 (“Move Towards Ethical Investment in India”) jointly by IOS and Indo-Arab Economic Cooperation Forum; in New Delhi again, on February 3-4, 2010 (“Beyond the Meltdown: Search for Options”) jointly by IOS and Indo-Arab Economic Cooperation Forum, and in Kashmir University, Srinagar (“Interest-Free Institutional Mechanism [Banking, Finance and Insurace] for Promoting Investment”) organised jointly by IOS and Department of Business and Finance Studies, Kashmir University from June 3 to 5, 2011.
The goal has not been achieved fully, but only in part. There is more struggle ahead.
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Dr. Mohammad Manzoor Alam
Dr. Mohammad Manzoor Alam is an erudite Islamic Economist and Social Scientist. He has been associated with Institute of Objective Studies (IOS) as its Chairman for over 25 years now. Dr. Manzoor Alam, a Ph.D. in Economics from Aligarh Muslim University, has held various high-ranking positions in many international organizations such as Economic Advisor in the Ministry of Finance and National Economy, Riyadh, Saudi Arabia; Associate Professor Deptt. of Islamic Economics, University of Imam Mohammad-bin-Saud, Riyadh, Saudi Arabia; Chief Coordinator for the Translation of Meaning of the Holy Quran in different languages of the world at King Fahd Holy Quran Printing Complex, Madinah Munawwarah, Saudi Arabia; Chief Representative of International Islamic University, Malaysia (IIUM) in India; Member of the General Committee of the IDB Scholarship Program for Muslim Communities in Non-Member Countries, Islamic Development Bank, Jeddah, K.S.A.; Consultant of the International Institute of Islamic Thought, USA in India; Founder Member of International Islamic Charitable Organisation, Kuwait; and Member, Steering Committee, Istanbul Talks, Civil Solidarity Platform, Istanbul, Turkey.
Dr. Manzoor Alam holds membership on the board of many international journals as well. He is Member of the Advisory Board of MEDAD, published from the KSA; Member of the International Advisory Board of American Journal of Islamic Social Sciences, published from the USA; and Member of the Advisory Board of Awqaf, published from Kuwait.
In India, apart from being Chairman of Institute of Objective Studies (IOS), Dr. Manzoor Alam is ably guiding the Indian Muslim community with his vast experience by serving in different capacities such as General Secretary, All India Milli Council, New Delhi; President, Indo-Arab Economic Cooperation Forum, New Delhi; President, Indian Association of Muslim Social Scientists, New Delhi; and Member of All India Muslim Personal Law Board.
Under his stewardship, Dr. Manzoor Alam has successfully transformed the Institute of Objective Studies to being India’s foremost, pioneering and only organization in the country engaged in generating knowledge in Islamic Perspective, Educational development of Indian Muslims, Research, holding Conferences, seminars and workshops on vital issues, Publications and Advocacy for Muslims and other weaker sections’ causes.
Address for Communication
Institute of Objective Studies 162, Jogabai Main Road ,P.O. Box 9725, Jamia Nagar , New Delhi-110025 (India)
Mobile – +91- 9810157494 – email: manzoor@ndf.vsnl.net.in
*Disclaimer : The views expressed by the author in this feature are entirely his own and do not necessarily reflect the views of INVC .
