Islamic Micro FinanceJoin now to read essay Islamic Micro FinanceIslamic Micro FinanceProvision of Islamic microfinance services and productsCommon Elements between Islamic finance and microfinance:There are many similarities in the nature of Islamic banking and microfinance as both forms of finance represent unconventional solutions to financial needs starting from egalitarian approaches being open to all customers without setting any apparent restriction to different categories of clientele.
Similarly both the systems advocate financial inclusion, entrepreneurship and risk-sharing through partnership finance.Moreover, both have their focus on developmental and social goals to be accomplished in the society.Criteria for Islamic Microfinance:The following criteria would be followed for persons/entities applying for Islamic Micro-finance bank:All financial transactions of Islamic MFB will be in accordance with the injunctions of SHARIAH.Every Islamic MFB will be required to appoint a Shariah Advisor who should meet the “Fit and Proper Criteria” for Shariah Advisors, issued vide IBD Circular 3 of 2004. Appointment of Shariah Advisor will require written approval from State Bank of Pakistan for which information about Shariah Advisor should be submitted to the State Bank on Form SAP, provided in the aforementioned circular.
In accordance with the Shariah (Islamic) Governance Guidelines, the State Bank of Pakistan issued the advisory on January 24, 2007.
The statement (pdf) of UBIB president Masood Azad confirmed the recommendation of the Supreme Court on October 13, 2016. During hearing on the matters of financial inclusion in the Muslim majority of Kalyan-Jammu Kalyan, UBIB president Masood Azad told the hearing on January 24, 2016, that all aspects of banking policy are subject to constitutional provisions to ensure integrity. He referred to the recommendations of Supreme Court on November 26, 2016, in which the Supreme Court ruled that the Bank has the constitutional authority to direct the banks in Kalyan (the Governmental and Indian entities) as to how to promote the bank’s financial well-being following the Shariah.
The UBIB president reiterated that the Bank undertakes to promote the good, the environment and the culture in Muslim-majority Kalyan, and stressed that, “we are committed to make sure that the financial and economic sector is fully funded and managed under Islam. This means maintaining an open banking environment in every way, to promote economic development in the Kalyan community.” Azad added that the government will endeavour to achieve this goals by raising funds to subsidise financial inclusion in Muslim-majority Kalyan.
The BSP director general, A. R. Shah, had said on January 24, 2016 that the BSP intends to adopt a new system or proposal to bring an improvement in financial inclusion in Kalyan in the year 2019, and also on January 25, 2016, to implement the recommendations of Shariah Commission report No.5-4 of May 2013.
After the UBIB has issued the advisory in its circular on October 13, 2016, the government will now pursue its plans for bringing in new systems to encourage financial inclusion in Muslim community and to take a more holistic approach to this issue.
The government plans to hold a meeting in Kolkata on January 19-20, 2017 to discuss economic and spiritual aspects of banking policy from November 15 to February 5, 2017. The meeting will be held in the Muslim Indian Community in Pune from 21 to 25 February 2017, between Mina and the Muslim Indian Council of Kolkata on February 4-6, 2017.
Governmental leaders also spoke out from all across Muslim majority in Kalyan, on November 28, 2016, on a variety of issues. While some government officials in Kalyan expressed doubts about the viability of the Islamic MFB, some Muslims, such as the Chief Minister Najeeb Jung, assured that they will make good use of this opportunity to promote economic development in Muslim-majority Muslim-majority Kalyan.
On December 3nd, 2016, President Parkash Singh asked the UBIB to take action to ensure effective implementation of Shariah Commission recommendations. During the meeting, he promised the following action:
To create a new government that will promote Islamic microfinance system in Kalyan
To promote Islamic microfinance system in Kalyan to facilitate entrepreneurship and security in the Muslim community
To provide a sense of support to the Muslim community due to the importance of Muslim fundamentalism
To establish the Muslim micro
In accordance with the Shariah (Islamic) Governance Guidelines, the State Bank of Pakistan issued the advisory on January 24, 2007.
The statement (pdf) of UBIB president Masood Azad confirmed the recommendation of the Supreme Court on October 13, 2016. During hearing on the matters of financial inclusion in the Muslim majority of Kalyan-Jammu Kalyan, UBIB president Masood Azad told the hearing on January 24, 2016, that all aspects of banking policy are subject to constitutional provisions to ensure integrity. He referred to the recommendations of Supreme Court on November 26, 2016, in which the Supreme Court ruled that the Bank has the constitutional authority to direct the banks in Kalyan (the Governmental and Indian entities) as to how to promote the bank’s financial well-being following the Shariah.
The UBIB president reiterated that the Bank undertakes to promote the good, the environment and the culture in Muslim-majority Kalyan, and stressed that, “we are committed to make sure that the financial and economic sector is fully funded and managed under Islam. This means maintaining an open banking environment in every way, to promote economic development in the Kalyan community.” Azad added that the government will endeavour to achieve this goals by raising funds to subsidise financial inclusion in Muslim-majority Kalyan.
The BSP director general, A. R. Shah, had said on January 24, 2016 that the BSP intends to adopt a new system or proposal to bring an improvement in financial inclusion in Kalyan in the year 2019, and also on January 25, 2016, to implement the recommendations of Shariah Commission report No.5-4 of May 2013.
After the UBIB has issued the advisory in its circular on October 13, 2016, the government will now pursue its plans for bringing in new systems to encourage financial inclusion in Muslim community and to take a more holistic approach to this issue.
The government plans to hold a meeting in Kolkata on January 19-20, 2017 to discuss economic and spiritual aspects of banking policy from November 15 to February 5, 2017. The meeting will be held in the Muslim Indian Community in Pune from 21 to 25 February 2017, between Mina and the Muslim Indian Council of Kolkata on February 4-6, 2017.
Governmental leaders also spoke out from all across Muslim majority in Kalyan, on November 28, 2016, on a variety of issues. While some government officials in Kalyan expressed doubts about the viability of the Islamic MFB, some Muslims, such as the Chief Minister Najeeb Jung, assured that they will make good use of this opportunity to promote economic development in Muslim-majority Muslim-majority Kalyan.
On December 3nd, 2016, President Parkash Singh asked the UBIB to take action to ensure effective implementation of Shariah Commission recommendations. During the meeting, he promised the following action:
To create a new government that will promote Islamic microfinance system in Kalyan
To promote Islamic microfinance system in Kalyan to facilitate entrepreneurship and security in the Muslim community
To provide a sense of support to the Muslim community due to the importance of Muslim fundamentalism
To establish the Muslim micro
The application shall indicate the modes of finance and product structure proposed to be used for raising resources and extending financial assistance to the clients.
The applicant