AMU to start 'Islamic Banking' course

LUCKNOW: In what is being touted as a first of its kind in the country, Aligarh Muslim University (AMU) will launch a one-year post graduate
diploma course in 'Islamic Banking and Finance' based on tenets of Shariah.

"The basic principle of Islamic banking based on Shariah, Islamic rules of transaction, is prohibition of Riba (interest)and is known as interest free banking system. As per the tenets of Islam earning interest on money deposit and loans in the bank is prohibited by law," Dr Mohammad Nejatullah Siddiqi, who designed the one-year diploma course, told reporters.

The university academic council, highest body of the university, which decides on academic affairs, has approved of the introduction of the course early this month from the next academic session, he said, adding, that there would initially be 20 seats in the course.

In this system of banking the depositor, who does not bear risk as in other banking systems, has to equally share the risk with the bank. Owner of the capital, however, is allowed to have a share in the bank's profits, Siddiqui, a retired AMU professor of Economics and Islamic Studies, said, adding that a similar system is followed by the banks while offering loans to the customers.

This type of banking system reduces speculation or gambling, he said. The course would enable students to make a career in Islamic banking, which is already very popular in Islamic countries, he added.

"As of now no university in the country is offering a course in Islamic Banking. Though some research work on the subject has been done in Karnataka and Pune universities, and a handful of part time refresher courses are being offered by some institutes, the course does not figure in the syllabus of any university," he claimed.

About the future prospects of the course, he said that though there are no Islamic banks in India, there existed a few non-banking cooperatives in Karnataka and Mumbai, which have branches in cities like Aligarh and Chennai.

"India is seen as a potential place for the Islamic banking, which can also attract NRI investors. Some of the top Indian companies are looking forward to launch Islamic financial products in the country," said Siddiqi, claiming that the placements after pursuing this course would be very good.

Source: Times of India.
Link: http://timesofindia.indiatimes.com/Cities/AMU_to_start_Islamic_Banking_course/articleshow/3996635.cms.