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BJP Leader Subramanian Swamy Opposes Introduction of Islamic Banking in Jammu and Kashmir

Strategic Insights

— 2 min read

Senior BJP leader Subramanian Swamy has expressed strong opposition to the introduction of Islamic Banking in Jammu and Kashmir, arguing that it would be against the laws of India and financially disastrous for the country. In a letter to Prime Minister Narendra Modi, Swamy referenced a similar attempt by the State Bank of India to set up a Sharia Mutual Fund in 2014, which was blocked due to his intervention. Swamy has also highlighted the views of the Reserve Bank of India and the Ministry of Finance, which have opposed Sharia-compliant banks in the past. The Jammu and Kashmir High Court is currently considering a Public Interest Litigation (PIL) seeking the introduction of Islamic Banking in the state, and Swamy has urged the court to be apprised of the correct position of the Union of India.

Key Takeaways:

  • Senior BJP leader Subramanian Swamy has opposed the introduction of Islamic Banking in Jammu and Kashmir, terming it against the laws of India and financially disastrous for the country.
  • Swamy referenced a similar attempt by the State Bank of India to set up a Sharia Mutual Fund in 2014, which was blocked due to his intervention in 2014.
  • The Reserve Bank of India and the Ministry of Finance have filed affidavits opposing Sharia-compliant banks in the past.
  • The Jammu and Kashmir High Court is considering a Public Interest Litigation (PIL) seeking the introduction of Islamic Banking in the state.
  • Swamy has urged the court to be apprised of the correct position of the Union of India.
  • The J&K High Court has granted four more weeks' time to the government to respond to the PIL.
  • Jammu and Kashmir People's Forum, a non-government organization, filed the PIL in 2018.
  • The Forum seeks direction to J&K Bank to take immediate steps for the opening of Sharia-compliant windows and to place before the court the entire details of NPAs.

Statistics:

  • The PIL was filed by Jammu and Kashmir People's Forum in 2018.
  • The High Court of J&K and Ladakh has granted four more weeks' time to the government to respond to the PIL.
  • The RBI and J&K Bank have already responded to the PIL.
  • Subramanian Swamy wrote the letter to the PM on November 8.
  • Swamy's letter referenced the Kerala case, in which the Reserve Bank Governor and Ministry of Finance filed affidavits opposing Sharia-compliant banks in 2010.

Sources:

  • Senior BJP leader Subramanian Swamy
  • The letter issued by Swamy on November 8
  • The Public Interest Litigation (PIL) filed by Jammu and Kashmir People's Forum in 2018
  • The High Court of J&K and Ladakh
  • Reserve Bank of India (RBI)
  • J&K Bank
  • The Northlines, Copyright 2021
  • Contify.com

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