Islamic Banking Can Solve Economic Crises: MH Khatkhatay

The process of Islamic Banking may seem novel to Indian market, but it’s proving to be successful, and is an effective solution to solve the economic crises in the society, said internationally renowned finance expert and Director of Investments – Rehbar Finance Mr. MH Khatkhatay.

Addressing the media ahead of a seminar on Islamic Banking at FTAPCII Conference Hall on Saturday evening in the presence of Islamic banking experts, Mr. Khatkhatay who is an IIT Bombay alumni, said “even though the process of Islamic banking is approved by regulatory bodies including the RBI and SEBI, there is very little awareness among the people about the benefits of Islamic banking.

Not only is process of the Islamic banking and finance, by virtue of interest-free banking, legal but it grants businesses and investors an interest-free way to manage their businesses. The banking system, operating within Islamic bounds known as Shariah, and certified by the Muslim Shariah Board, will serve as platform to connect businesses with investors and vice versa, he said.

Speaking on the occasion, Dr. Shariq Nisar, an internationally recognized expert in Islamic finance, said “the world’s financial system is going through a rapid change, and evolution. The theory of financial systems has evolved, where virtual banks have come into existence, and structural changes in financial system are rampant”.

Evolutions and Innovations in Financial Technology have changed the scenario, and Rehbar Financial Consulting is working to facilitate businesses with the solutions to the changing financial systems of the world whilst complying with Islamic finance.

Only 8% people can borrow from banks, while the savings in the bank are done by the whole community or the country. The lower segment or the smaller and medium enterprises are deprived of adequate benefits of finance.

The organization, which serves a professional platform to connect prospective investors with businesses seeking financial assistance, prepares a due diligence report encompassing legal documentation, and monitors appropriate investment securities while connect investors with businesses. It meticulously monitors the business on behalf of the investors by charging a small investor’s fee, acting as a single point of contact for both the business and the investor from deal inception to the final exit.

Rehbar Finance, founded four years ago, supports organization that need growth in working capital. Mufti Toufeeq Mansoor Mazahiri, Member, Shariah Board, said “the banking model allowed in islam is interest-free as interest damages the economical balance.

Tanveer Ahmed, Head – Deal Monitoring and Due Diligence, Rehbar said “Rehbar analyses the finances of the company based on extensive financial analyses of company’s”.

Speaking on this occasion, Mr. Shabbir said “pre-investment risk assessment by investor can thwart losses significantly. The risk is further reduced if the process goes through a regulatory body.

Member Sharia Board Mufti Toufeeq Mansoor Mazahiri said “one must adequately do a risk assessment before investing or trusting any finance organization. In the absence of an finance expert, one must seek expert advice before investing.”