Letters to the editor

Written by The Financial Express | Updated: Jan 30 2011, 04:00am hrs
Islamic banking

Drawing attention to the low percentage of deposits by the Muslim community, your editorial Faith finance (FE, Jan 22) has suggested that public sector banks open more branches in under-banked Muslim-dominated areas. But even this may not work, if it is based on faith or religious laws. There were reports that huge amounts of interest belonging to Muslims remained in banks without withdrawal. If at all it affects, it only does in the right way. By allowing Islamic banking, a large section of the community will be covered by banking and, in the process, billions of petro-dollars may flow in from rich Arab countries. Perhaps the issue needs bolder decisions.

Jacob Sahayam Thiruvananthapuram