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Why in news?
In 2012 RBI had allowed corporate to set up white label ATMs to increase the
penetration of ATMs in several areas of the country (tier3-tier6cities)
Tatas have rolled out the first ever white label ATMs network under the brand name
INDICASH.
The first INDICASH ATM was inaugurated in chandrapada a village in Thane district
of Maharashtra.
Tata communications payment solutions (TCPS) has got license from RBI to launch
white labeled ATMs under scheme B.
In Scheme B WLA licensee has to setup a minimum of 5000/- ATMs per year for 3
years. Two for tier III to tier VI cities and one for tier I- tier II cities.
Sponsor Bank is the Bank which will supply money to the WLA licensee.
Muthoot finance a gold loan company has also received in principal approved from
RBI to setup the WLAs.
Advantages:
Rural people and small town people get benefited.
More penetration in ATM services is possible.
Islamic Banking
What is Islamic Banking?
Financial institution following the principles of Islamic finance it is also known as
Similarly Islamic Banks also cannot invest in bonds treasury bills and commercial
papers or lend to finance inventory or projects for interest
The RBI has clarified that the permission is not for commercial Banking but only
for a NBFC
Kerala a remittance- driven economy has been requesting the RBI to allow
Islamic Banking for nearly a decade
It now becomes the first state to start a Sharia based NBFC
It has been reported that close to Rs 50,000 crore of interest money is lying
unclaimed with Kerala Banks most of which is remittance from Kerala muslims
working in the gulf and other foreign countries, as under Sharia they cannot claim
Challenges:
Lack of Islamic Banking professionals
Lack of shariah scholars who have specialized in Islamic economics
Conclusion:
For this process to be successful the Shariah boards of our Islamic Banks should absorb
Islamic scholars based on their technical expertise rather than their popularity.
References:
In.returns.com
halalinindia.com
timesofindia.com
m.economictimes.com
THE HINDU
thesundaytimesonline.com
From:
Manoj Hegde