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Fw: [MTC Global] Islamic banking gets RBI approval

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  • Satish Oberoi
    ... From: Nayab Naseer Hello everyone: I am a Muslim, and what I feel is that after the Haj subsidy (where there is open loot and
    Message 1 of 6 , Aug 19, 2013


      ----- Forwarded Message -----
      From: Nayab Naseer <vu3nnn@...>


      Hello everyone:

      I am a Muslim, and what I feel is that after the Haj subsidy (where there is open loot and profiteering in the name of Hajj), this so-called Islamic bank will be the biggest fraud / scam committed in the name of Islam in India... or else the brains behind the movement have no idea what "riba" or interest is all about.

      Islamic banking as practiced in the Umayyad, Abbasid & Ottoman caliphates was an entirely different financial system than the present capitalistic system. At the very least, it was based on the gold standard and not the fractional banking system as it is prevalent now.

      Today's Islamic banking promises 0% interest, within the capitalistic "fractional banking" system, and is not immune to devaluation and all other risks. All the other characteristics of the interest-based system is still present. Any 100% equity fund offers the same thing.

      0% interest is different from NO-interest or being "interest-FREE."

      The RBIs latest approval of "Islamic banking" would end up offering 0% risk-free finance to the businesses, paying 0% interest to the gullible investors and exposing them to maximum risk, as such financial institutions would be outside the strict regulations & safeguards of the conventional banking systems.

      Regards

      Nayab Naseer


      On Mon, Aug 19, 2013 at 1:35 PM, Satya Prakash Agarwal <spagarwal@...> wrote:


      ---------- Forwarded message ----------
      From: Satya Prakash Agarwal <spagarwal@...>
      Date: Mon, Aug 19, 2013 at 1:31 PM
      Subject: Re: [MTC Global] Islamic banking gets RBI approval
      To: misrapadma@..., mtc@...


      Dear Professor Misra:
       
      Your arguments and views are interesting.
       
      Certain practices are followed in certain communities and social groups according to situations, circumstances and constraints in the environment.
       
      For instance, horse meat is eaten in France but not in America, because, I suppose, before bicycles and automobiles were invented, horse was a very useful animal in many ways and eating it would not have been the best thing to do. Horses have also been used for agriculture in US and South America.
       
      Similarly, cows were not eaten in India as they served many useful purposes like providing milk for food, helping in tilling and agriculture, carrying loads, providing dung as manure, besides being calm and not aggressive. In an era when we did not have tractors and even if these were available, we could not afford, when chemical fertilisers were not available, where other available animals could not be tamed and put to use, it would not have made financial and economic sense to kill cows. May be, our religious and social leaders, caused us to respect cows for our own selfish good. Besides, a question arises - why eat cows when other forms of food are available.
       
      I was on a visit to the USA in  a Rotary Group Study Exchange Programme in 1978 and was often asked the question - Why don't Hindus not eat cow? and, if they do not eat cow, what all do they eat or whether they starve otherwise. I used to counter that question by asking the audience - Do you eat tractors? They laughed and wondered and then asked - How can you eat a tractor? I used to reply, if we use the cow as tractor, should we keep it or eat it. The Americans then said - Nobody explained it that way. Now we understand, why you do not eat cow.
       
      Human beings were meat eaters for a long time till they discovered agriculture.
       
      May be Islamic Banking in whatever form it is, is in the process of evolution and was given a religious sanction in the situation which prevailed when it was introduced. It had a social purpose - to avoid profiteering and exploitation- which is good. It will be desirable, to allow it to evolve and find its way, if there are takers.
       
      In a multicultural society, we should continually find common grounds, so that there can be peace, harmony and order and we do not trample on each other's feet.
       
      Regards.
       
                                                     Professor Satya Prakash Agarwal
       
       


      On Mon, Aug 19, 2013 at 12:23 PM, padma misra <misrapadma@...> wrote:
      Prof. Goel has made a very important and fundamental point. 

      And i am to make more.  My questions may seem uncomfortable to many on this forum, but a Pandora Box has been opened....by bringing religious matters into financial issues. 

      my question is what of other people. of other religions.

      Say for me... i am a Brahman.... and i will acknowledge that a true Brahman must be so also by Karma and not just by birth. 

      but just performing a karma is not enough...

      for example slaughter of animals is not approved. many will argue that there different versions to this and sacrifices are allowed. 

      But i refer specifically to mass scale slaughtering of animals in addition to liquor, tobacco, drug, etc.  Where does that come in?

      For me whether it is traditional form of banking or Islamic banking...isnt it the same.... I will according to religious dictate would be a sinner this side or that side of the line when my money gets involved in these kind of businesses.


      In addition to this People following Jainism would have even a longer list....of areas not to be invested in.

      This could just go on and on...but if people like me who have been trying for ages to accommodate everyone's wishes.... raise these issues we would immediately be branded as following a HINDUTVA  AGENDA....

      but this is not all.....i am not the only one...there are environmental issues also...so many would say..HEY...i dont want my money going to businesses that pollute and destroy the environment....or i dont want my money to be lend to organizations  who are manufacturing weapons.. and then selling them to warring fractions in africa, asia, middle east....or any where else..and earning.....exorbitant unethical profits.(and you can count me among them)

      I dont want my money to be used to exploit business opportunities at cost of local people and weak governments.....I wont fund operations of countries plotting to over throw...other's governments and replacing it with a lab manufactured democratic-version puppet government.

      An of-course i wouldnt want my money to be used by a government who cant see to it that all the corruption loop holes are effectively plugged.


      All i like to say...dont you think the RBI has acted in haste..... 

      there could have been a perfectly simple solution.. Make an informed customer...the customer knows and gets to decide where to invest..in the existing banking industry...

      The banks could have developed products..shariah compliant...or any other compliant...like SRI (social responsible investment)..instead of going ahead..and opening a PANDORA's BOX.....


      it will give ammunition to the wrong people.....and we dont want that do we..

      And i am Hindu.....and i have no agenda.....except that i dont want my country to go in the wrong direction.....

      THERE ARE ALWAYS ALTERNATIVES....IF WE CARE TO CONSIDER....AND IF THE GOVERNMENT AND RBI Genuinely WANTS TO PROMOTE RESPONSIBLE INVESTMENT...they will find that majority of India will support them in their endeavor.

      But i have doubts that this about responsible investments....

      I have nothing against this...just wish it could be more inclusive...

      regards










      On Mon, Aug 19, 2013 at 8:39 AM, Virendra Goel <goel.virendra@...> wrote:
      Do we then understand that only source of funds for the bank will be share capital and this share capital can be increased or reduced as per the needs of the times and that their shares will have a floating intrinsic value based on perceived profits on any given day so that if any share holder wants to dispose off his shares can do so? That there will be no inter-banking transactions?
      Regards
      Virendra Goel
       
      From: join_mtc@... [mailto:join_mtc@...] On Behalf Of Krishna Consultancy
      Sent: Sunday, August 18, 2013 1:36 PM
      To: join_mtc@...

      Subject: Re: [MTC Global] Islamic banking gets RBI approval
       
      Hi,
       
      Prof Areef very interesting and well researched presentation. Virenderji I have limited knowledge I was also curious to learn more about this subject so attempted to write this paper http://navinpunjabi.com/publications.php
       
      Well in lieu of interest on the money given as deposit a person will get part ownership of a business to which the bank is lending and the payout he gets will be treated as profits from business
       
      With respect to the bad debts management the bank is also treated as a partner in the business to which  it is lending and hence if any bad debts arises it shall be treated as a loss in business.
       
      The whole concept revolves around the Shariaha principle of 'Reba' which is interest free banking and 'Halal' which prohibits investment in companies that deal in alcohol, cigarettes and other prohibited items.
       
      The challenges as discussed in my paper will remain the parallel running of both the banking systems and drafting regulations to ensure there are lacunas in the system. 
       
      Regards

      Dr. Navin Mukesh Punjabi
      Assistant Professor
      H R College of Commerce & Economics
      Hand Phone: +91 9920177199
      Skype: navin.punjabi
       
      Sent from my iPad

      On 18-Aug-2013, at 10:28 AM, "Virendra Goel" <goel.virendra@...> wrote:
      Just out of curiosity and to understand the concept better , I would like to know, how it is going to meet its expenditure and bad debts and what kind of benefits it is going to pass on to its depositors in lieu of interest?
      Regards
      Virendra Goel
       
      From: join_mtc@... [mailto:join_mtc@...] On Behalf Of Krishna Consultancy
      Sent: Sunday, August 18, 2013 9:36 AM
      To: join_mtc@...
      Cc: join_mtc@...
      Subject: Re: [MTC Global] Islamic banking gets RBI approval
       
      Hi All 
       
      Thank you sir this is gr8 news. My husband had also made an to write a paper in 'Islamic Finance an Indian Perspective' and the paper was presented at an international level conference organised by Pune University
       
      Please find the link to download the paper for your comments and reflections
       

      Regards
      Mrs. Diya Navin Punjabi
       
       
       

      On 18-Aug-2013, at 8:45 AM, Muralidhar Phadke <muralidhar44@...> wrote:
      very good news. I wish the new bank following Islamic tenets, in particular not charging interest on debts nor paying interest on deposits. Fine principle, I wish this bank all the best and should flourish.
       
      Regards
       
      Muralidhar
       
      On Sat, Aug 17, 2013 at 10:03 PM, mohammed areef Irfan <arifirfanmd@...> wrote:
      Dear All,
       
      Thank you for the update Sir , Please see below my presentation on Islamic Banking & Finance, In the year 2010 I've presented a paper on the same topic in Osmania University, Hyderabad.
       
      On Sat, Aug 17, 2013 at 7:20 PM, Prof. Bholanath Dutta <bnath.dutta@...> wrote:

      Islamic banking gets RBI approval

      T Ramavarman, TNN | Aug 17, 2013, 07.03 AM IST
       
      KOCHI: The Kerala government has got the go-ahead from the Reserve Bank of India ( RBI) to launch a financial institution following the principles of Islamic finance.

      Cheraman Financial Services Limited (CFSL) will be floated by Kerala State Industrial Development Corporation to function as a non-banking finance company (NBFC).

      A formal announcement on CFSL, the latest incarnation of Al Baraka Financial Services, is expected on Saturday. Counting on the state's traditional Gulf links, the previous government had hoped to raise Rs 40,000 crore.

      CFSL will have a paid-up capital of about Rs 100 crore but intends to raise about Rs 250 crore as alternative investment fund. The Shariah-compliant institution will desist from charging interest on loans or give interests on deposits. It will target sectors like infrastructure, services and manufacturing sectors and keep off taboo areas including liquor, tobacco and gambling or speculation.

      Financing start-up projects is one of its pilot programmes. There are also plans to set up a commercial complex in Kannur and operate seaplane services.
      "We've received many concept papers. We will select a feasible few to start with," sources said.
       
      Educate, Empower, Elevate
      Prof. Bholanath Dutta
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      Thanks and Regards
      Areef Irfan Mohammed
      Phase Coordinator (10-12)
      Al Ain Juniors School, Indian System.
      +971 55 1903696
      arifirfanmd@...

       
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      --
      Dr. Padma Misra
      Mobile no:09897141341

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    • SHAKILA
      Hi All, Some of the comments and observations are fascinating and thought provoking. Islamic Banking which is based on interest free economy can function in
      Message 2 of 6 , Aug 22, 2013
        Hi All,
         
        Some of the comments and observations are fascinating and thought provoking.
         
        Islamic Banking which is based on interest free economy can function in India as complementary to the conventional banking.
        Since we are only familiar with the interest based banking and economy,the general reluctance is quite natural.The inherant deficiencies of interest centered banking and economy  are being accepted as an unavoidable side effect.
         
        Some of the components of the interest are inflation,cost of capital,risk of non payment, opportunity cost etc.Most of these components fluctuate continuously.But the interest rates are kept stable  most of the time without incorporating the changes that occur in the components.Hence the benefit of this system is skewed either in favour of the borrower or of  the lender depending on the situation.
         
        In a high inflationary situation, a bank repays the customers with diminished value of thier money where as a  bank borrower is benefitted in the repayment of his loan as the money value got diminished.The effect will be vice versa if the inflation is negative.
         
        In the case of Islamic banking,the principle of asset sharing or partnering is applied.This is in contrast with the creditor-debtor relationship of the conventional banking.
         
        In India,a large segment of the people are not using banking facilities for their economic needs due to many reasons including the religious belief. It is possible to bring them to the banking envirnment by introuducing the Islamic banking to some extent and enable them to participate in the economic development of themselves and the nation and make them the part of the main stream population.
         
        This will be a game changer for the country in her journey to becoming a leading global economic power.
         
        Let give it a try....
         
        Regards,
         
        T.M. Shamsu
         
        Financial Consultant


        ----- Original Message -----
        From: Satish Oberoi <oberoi50@...>
        Date: Monday, August 19, 2013 5:46 pm
        Subject: [Arkitect India] Fw: [MTC Global] Islamic banking gets RBI approval
        To: undisclosed recipients: ;

         



        ----- Forwarded Message -----
        From: Nayab Naseer <vu3nnn@...>


        Hello everyone:

        I am a Muslim, and what I feel is that after the Haj subsidy (where there is open loot and profiteering in the name of Hajj), this so-called Islamic bank will be the biggest fraud / scam committed in the name of Islam in India... or else the brains behind the movement have no idea what "riba" or interest is all about.

        Islamic banking as practiced in the Umayyad, Abbasid & Ottoman caliphates was an entirely different financial system than the present capitalistic system. At the very least, it was based on the gold standard and not the fractional banking system as it is prevalent now.

        Today's Islamic banking promises 0% interest, within the capitalistic "fractional banking" system, and is not immune to devaluation and all other risks. All the other characteristics of the interest-based system is still present. Any 100% equity fund offers the same thing.

        0% interest is different from NO-interest or being "interest-FREE."

        The RBIs latest approval of "Islamic banking" would end up offering 0% risk-free finance to the businesses, paying 0% interest to the gullible investors and exposing them to maximum risk, as such financial institutions would be outside the strict regulations & safeguards of the conventional banking systems.

        Regards

        Nayab Naseer


        On Mon, Aug 19, 2013 at 1:35 PM, Satya Prakash Agarwal <spagarwal@...> wrote:


        ---------- Forwarded message ----------
        From: Satya Prakash Agarwal <spagarwal@...>
        Date: Mon, Aug 19, 2013 at 1:31 PM
        Subject: Re: [MTC Global] Islamic banking gets RBI approval
        To: misrapadma@..., mtc@...


        Dear Professor Misra:
         
        Your arguments and views are interesting.
         
        Certain practices are followed in certain communities and social groups according to situations, circumstances and constraints in the environment.
         
        For instance, horse meat is eaten in France but not in America, because, I suppose, before bicycles and automobiles were invented, horse was a very useful animal in many ways and eating it would not have been the best thing to do. Horses have also been used for agriculture in US and South America.
         
        Similarly, cows were not eaten in India as they served many useful purposes like providing milk for food, helping in tilling and agriculture, carrying loads, providing dung as manure, besides being calm and not aggressive. In an era when we did not have tractors and even if these were available, we could not afford, when chemical fertilisers were not available, where other available animals could not be tamed and put to use, it would not have made financial and economic sense to kill cows. May be, our religious and social leaders, caused us to respect cows for our own selfish good. Besides, a question arises - why eat cows when other forms of food are available.
         
        I was on a visit to the USA in  a Rotary Group Study Exchange Programme in 1978 and was often asked the question - Why don't Hindus not eat cow? and, if they do not eat cow, what all do they eat or whether they starve otherwise. I used to counter that question by asking the audience - Do you eat tractors? They laughed and wondered and then asked - How can you eat a tractor? I used to reply, if we use the cow as tractor, should we keep it or eat it. The Americans then said - Nobody explained it that way. Now we understand, why you do not eat cow.
         
        Human beings were meat eaters for a long time till they discovered agriculture.
         
        May be Islamic Banking in whatever form it is, is in the process of evolution and was given a religious sanction in the situation which prevailed when it was introduced. It had a social purpose - to avoid profiteering and exploitation- which is good. It will be desirable, to allow it to evolve and find its way, if there are takers.
         
        In a multicultural society, we should continually find common grounds, so that there can be peace, harmony and order and we do not trample on each other's feet.
         
        Regards.
         
                                                       Professor Satya Prakash Agarwal
         
         


        On Mon, Aug 19, 2013 at 12:23 PM, padma misra <misrapadma@...> wrote:
        Prof. Goel has made a very important and fundamental point. 

        And i am to make more.  My questions may seem uncomfortable to many on this forum, but a Pandora Box has been opened....by bringing religious matters into financial issues. 

        my question is what of other people. of other religions.

        Say for me... i am a Brahman.... and i will acknowledge that a true Brahman must be so also by Karma and not just by birth. 

        but just performing a karma is not enough...

        for example slaughter of animals is not approved. many will argue that there different versions to this and sacrifices are allowed. 

        But i refer specifically to mass scale slaughtering of animals in addition to liquor, tobacco, drug, etc.  Where does that come in?

        For me whether it is traditional form of banking or Islamic banking...isnt it the same.... I will according to religious dictate would be a sinner this side or that side of the line when my money gets involved in these kind of businesses.


        In addition to this People following Jainism would have even a longer list....of areas not to be invested in.

        This could just go on and on...but if people like me who have been trying for ages to accommodate everyone's wishes.... raise these issues we would immediately be branded as following a HINDUTVA  AGENDA....

        but this is not all.....i am not the only one...there are environmental issues also...so many would say..HEY...i dont want my money going to businesses that pollute and destroy the environment....or i dont want my money to be lend to organizations  who are manufacturing weapons.. and then selling them to warring fractions in africa, asia, middle east....or any where else..and earning.....exorbitant unethical profits.(and you can count me among them)

        I dont want my money to be used to exploit business opportunities at cost of local people and weak governments.....I wont fund operations of countries plotting to over throw...other's governments and replacing it with a lab manufactured democratic-version puppet government.

        An of-course i wouldnt want my money to be used by a government who cant see to it that all the corruption loop holes are effectively plugged.


        All i like to say...dont you think the RBI has acted in haste..... 

        there could have been a perfectly simple solution.. Make an informed customer...the customer knows and gets to decide where to invest..in the existing banking industry...

        The banks could have developed products..shariah compliant...or any other compliant...like SRI (social responsible investment)..instead of going ahead..and opening a PANDORA's BOX.....


        it will give ammunition to the wrong people.....and we dont want that do we..

        And i am Hindu.....and i have no agenda.....except that i dont want my country to go in the wrong direction.....

        THERE ARE ALWAYS ALTERNATIVES....IF WE CARE TO CONSIDER....AND IF THE GOVERNMENT AND RBI Genuinely WANTS TO PROMOTE RESPONSIBLE INVESTMENT...they will find that majority of India will support them in their endeavor.

        But i have doubts that this about responsible investments....

        I have nothing against this...just wish it could be more inclusive...

        regards










        On Mon, Aug 19, 2013 at 8:39 AM, Virendra Goel <goel.virendra@...> wrote:
        Do we then understand that only source of funds for the bank will be share capital and this share capital can be increased or reduced as per the needs of the times and that their shares will have a floating intrinsic value based on perceived profits on any given day so that if any share holder wants to dispose off his shares can do so? That there will be no inter-banking transactions?
        Regards
        Virendra Goel
         
        From: join_mtc@... [mailto:join_mtc@...] On Behalf Of Krishna Consultancy
        Sent: Sunday, August 18, 2013 1:36 PM
        To: join_mtc@...

        Subject: Re: [MTC Global] Islamic banking gets RBI approval
         
        Hi,
         
        Prof Areef very interesting and well researched presentation. Virenderji I have limited knowledge I was also curious to learn more about this subject so attempted to write this paper http://navinpunjabi.com/publications.php
         
        Well in lieu of interest on the money given as deposit a person will get part ownership of a business to which the bank is lending and the payout he gets will be treated as profits from business
         
        With respect to the bad debts management the bank is also treated as a partner in the business to which  it is lending and hence if any bad debts arises it shall be treated as a loss in business.
         
        The whole concept revolves around the Shariaha principle of 'Reba' which is interest free banking and 'Halal' which prohibits investment in companies that deal in alcohol, cigarettes and other prohibited items.
         
        The challenges as discussed in my paper will remain the parallel running of both the banking systems and drafting regulations to ensure there are lacunas in the system. 
         
        Regards

        Dr. Navin Mukesh Punjabi
        Assistant Professor
        H R College of Commerce & Economics
        Hand Phone: +91 9920177199
        Skype: navin.punjabi
         
        Sent from my iPad

        On 18-Aug-2013, at 10:28 AM, "Virendra Goel" <goel.virendra@...> wrote:
        Just out of curiosity and to understand the concept better , I would like to know, how it is going to meet its expenditure and bad debts and what kind of benefits it is going to pass on to its depositors in lieu of interest?
        Regards
        Virendra Goel
         
        From: join_mtc@... [mailto:join_mtc@...] On Behalf Of Krishna Consultancy
        Sent: Sunday, August 18, 2013 9:36 AM
        To: join_mtc@...
        Cc: join_mtc@...
        Subject: Re: [MTC Global] Islamic banking gets RBI approval
         
        Hi All 
         
        Thank you sir this is gr8 news. My husband had also made an to write a paper in 'Islamic Finance an Indian Perspective' and the paper was presented at an international level conference organised by Pune University
         
        Please find the link to download the paper for your comments and reflections
         

        Regards
        Mrs. Diya Navin Punjabi
         
         
         

        On 18-Aug-2013, at 8:45 AM, Muralidhar Phadke <muralidhar44@...> wrote:
        very good news. I wish the new bank following Islamic tenets, in particular not charging interest on debts nor paying interest on deposits. Fine principle, I wish this bank all the best and should flourish.
         
        Regards
         
        Muralidhar
         
        On Sat, Aug 17, 2013 at 10:03 PM, mohammed areef Irfan <arifirfanmd@...> wrote:
        Dear All,
         
        Thank you for the update Sir , Please see below my presentation on Islamic Banking & Finance, In the year 2010 I've presented a paper on the same topic in Osmania University, Hyderabad.
         
        On Sat, Aug 17, 2013 at 7:20 PM, Prof. Bholanath Dutta <bnath.dutta@...> wrote:

        Islamic banking gets RBI approval

        T Ramavarman, TNN | Aug 17, 2013, 07.03 AM IST
         
        KOCHI: The Kerala government has got the go-ahead from the Reserve Bank of India ( RBI) to launch a financial institution following the principles of Islamic finance.

        Cheraman Financial Services Limited (CFSL) will be floated by Kerala State Industrial Development Corporation to function as a non-banking finance company (NBFC).

        A formal announcement on CFSL, the latest incarnation of Al Baraka Financial Services, is expected on Saturday. Counting on the state's traditional Gulf links, the previous government had hoped to raise Rs 40,000 crore.

        CFSL will have a paid-up capital of about Rs 100 crore but intends to raise about Rs 250 crore as alternative investment fund. The Shariah-compliant institution will desist from charging interest on loans or give interests on deposits. It will target sectors like infrastructure, services and manufacturing sectors and keep off taboo areas including liquor, tobacco and gambling or speculation.

        Financing start-up projects is one of its pilot programmes. There are also plans to set up a commercial complex in Kannur and operate seaplane services.
        "We've received many concept papers. We will select a feasible few to start with," sources said.
         
        Educate, Empower, Elevate
        Prof. Bholanath Dutta
        --
        MTC GLOBAL- Educate, Empower, Elevate
        ---
        You received this message because you are subscribed to the Google Groups "Management Teachers Consortium, Global" group.
        To unsubscribe from this group and stop receiving emails from it, send an email to join_mtc+unsubscribe@....
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        --
        Thanks and Regards
        Areef Irfan Mohammed
        Phase Coordinator (10-12)
        Al Ain Juniors School, Indian System.
        +971 55 1903696
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      • Raj Shekhar Chandola
        Dear All I lived in Oman for some years. Obviously, banks there follow Islamic banking and do not give interest on deposits. But they know customers want
        Message 3 of 6 , Aug 24, 2013
          Dear All

          I lived in Oman for some years.  Obviously, banks there follow Islamic banking and do not give interest on deposits.  But they know customers want some kind of return so every month there is a lottery with prizes ranging from a few hundred to tens of thousands of rial.  Every customer is eligible for these prizes whether they have a current account or an FD.

          After opening my account with them, in the very third month I won a prize equivalent to about Rs 30,000/- at that time even though my colleagues who had been banking with the bank for many years hadn't ever won anything !!!  Obviously they didn't feel the system was fair for everyone.

          RSC
        • Mohammad Imran
          Thanks for the comment. Islamic banking promotes gambling. That is one I can add to my list of negatives for it.
          Message 4 of 6 , Aug 24, 2013
            Thanks for the comment. Islamic banking promotes gambling. That is one I can add to my list of negatives for it.


            On Aug 24, 2013, at 4:14 AM, Raj Shekhar Chandola wrote:

             

            Dear All

            I lived in Oman for some years.  Obviously, banks there follow Islamic banking and do not give interest on deposits.  But they know customers want some kind of return so every month there is a lottery with prizes ranging from a few hundred to tens of thousands of rial.  Every customer is eligible for these prizes whether they have a current account or an FD.

            After opening my account with them, in the very third month I won a prize equivalent to about Rs 30,000/- at that time even though my colleagues who had been banking with the bank for many years hadn't ever won anything !!!  Obviously they didn't feel the system was fair for everyone.

            RSC


          • Sarwat Ali
            True, it does promote gambling and lottery is not fair by any means. Expecting any return in any form is a kind of interest with a different name. ... -- Dr
            Message 5 of 6 , Aug 25, 2013
              True, it does promote gambling and lottery is not fair by any means. Expecting any return in any form is a kind of interest with a different name.


              On Sun, Aug 25, 2013 at 10:21 AM, Mohammad Imran <dalibagh@...> wrote:
               

              Thanks for the comment. Islamic banking promotes gambling. That is one I can add to my list of negatives for it.



              On Aug 24, 2013, at 4:14 AM, Raj Shekhar Chandola wrote:

               

              Dear All

              I lived in Oman for some years.  Obviously, banks there follow Islamic banking and do not give interest on deposits.  But they know customers want some kind of return so every month there is a lottery with prizes ranging from a few hundred to tens of thousands of rial.  Every customer is eligible for these prizes whether they have a current account or an FD.

              After opening my account with them, in the very third month I won a prize equivalent to about Rs 30,000/- at that time even though my colleagues who had been banking with the bank for many years hadn't ever won anything !!!  Obviously they didn't feel the system was fair for everyone.

              RSC





              --
              Dr (Ms) sarwat ali
              pocket A/3C sukhdev Vihar , DDA Flats, 
              New Delhi - 110025

              9810525317


            • Mohammad Imran
              Getting interest on bank accounts is an equitable transaction for all account holders. Everyone gets a return proportional to their investment. This lottery
              Message 6 of 6 , Aug 25, 2013
                Getting interest on bank accounts is an equitable transaction for all account holders. Everyone gets a return proportional to their investment. This lottery form of giving money  is an inequitable transaction. It penalizes some and returns money to others. This indicates that Islamic banking is not a commercial transaction in which all participants have similar returns on their investments but a process of gambling which is against their religious rules. My religious belief is that Riba is Usury not interest. Usury is punitive and interest is return on services. The two are different.


                On Aug 25, 2013, at 7:55 AM, Sarwat Ali wrote:

                 

                True, it does promote gambling and lottery is not fair by any means. Expecting any return in any form is a kind of interest with a different name.


                On Sun, Aug 25, 2013 at 10:21 AM, Mohammad Imran <dalibagh@...> wrote:
                 

                Thanks for the comment. Islamic banking promotes gambling. That is one I can add to my list of negatives for it.



                On Aug 24, 2013, at 4:14 AM, Raj Shekhar Chandola wrote:

                 

                Dear All

                I lived in Oman for some years.  Obviously, banks there follow Islamic banking and do not give interest on deposits.  But they know customers want some kind of return so every month there is a lottery with prizes ranging from a few hundred to tens of thousands of rial.  Every customer is eligible for these prizes whether they have a current account or an FD.

                After opening my account with them, in the very third month I won a prize equivalent to about Rs 30,000/- at that time even though my colleagues who had been banking with the bank for many years hadn't ever won anything !!!  Obviously they didn't feel the system was fair for everyone.

                RSC






                --
                Dr (Ms) sarwat ali
                pocket A/3C sukhdev Vihar , DDA Flats, 
                New Delhi - 110025

                9810525317




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