Islamic banks in India

Rahmatullah,

doi:10.1080/02666959208716251

Cited by 2 publications

(1 citation statement)

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“…In fact, interest-based banking or financial system will not help to attain the target of financial inclusion for poor Indian Muslims because interest is strictly prohibited in Islamic ethics. Therefore, the operation of the Islamic financial system will allow the Muslims to work with the majority community in the financial sector, and this would definitely help them to build civil society as well as the economy (Chapra, 1992;Rahamatullah, 1992;Ahmad, 2008;Raqeeb, 2010).…”

Section: Financial Inclusion Of the Poor And Its Obstaclesmentioning

confidence: 99%

Financial inclusion of the poor: from microcredit to Islamic microfinancial services

Hassan

2015

Humanomics

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Purpose – The purpose of this paper is to initiate a direct discourse towards an Islamic microfinance focus agenda for the economic enlistment of the poor minority community and to allow poorer households in the financial inclusion. The issue of the Indian conventional microfinance institutions in failing to attract the poorest of the poor amongst Muslims is important for the purpose of this paper. This study explores a Shari’ah-compliant microfinance system which will create a level of playing-field with respect to the financial inclusion of the poor. Design/methodology/approach – The paper is a theoretical discussion on Islamic microfinancial services for financial inclusion of the poor. Therefore, there is little to say about “methodology” other than the conventional microfinance model is reviewed, and an alternative model of Islamic microfinancial service has been suggested to allow poorer households in the financial inclusion. Findings – The paper finds that there are some opportunities capable of improving the economic condition of the poor Muslim communities through some innovative approaches. To illustrate this finding, the paper emphasises on designing and delivering Islamic microfinancial products suitable for the poor based on the principle of Islamic solidarity. It argues that this service will help the poor and turn their savings into sums large enough to satisfy a wide range of personal, social and asset-building needs as well as needs relating to small businesses and consumption. Research limitations/implications – The paper’s findings are limited to the matter of financial inclusion of the poor through Islamic microfinancial services in India. Originality/value – Combining the Islamic social principle of solidarity for the less fortunate with the power of microfinance to provide financial access to the poor has the potential to reach out to millions more people. The ideas presented in this paper are designed to direct discourse towards an Islamic microfinance focus agenda for the economic enlistment of the poor Muslims in India.

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Section: Financial Inclusion Of the Poor And Its Obstaclesmentioning

confidence: 99%