Establishment of Islamic Financial Institutions

For the development of a proper plan leading to establishment of the Islamic banking system the following principles will be kept in view:

53.1 It is also recommended that a Board consisting of prominent theologians and jurists be formed to guide the Islamic Financial Institutions from time to time in the light of Shariah in connection with the business methods to be adopted by them.

53.2 The seminar directs this Report to be filed in the record of the Islamic Fiqh Academy of India along with other documents and thanks the Committee for submitting such an enlightening and comprehensive report.

53.3 The seminar resolves that a Board of theologians be formed by the Islamic Fiqh Academy of India to give legal advice and suggestions in the light of Shariah regarding problems and practical difficulties to be faced by the contemplated Islamic Financial Institutions, presented before them by the banking experts. This Board will also consider the questions raised in this report and present their solutions in the light of Shariah.

53.4 This seminar also resolves that a permanent Board consisting of experts on Banking and Islamic economy be set up to continue the task and prepare a blueprint for financial institutions which may be able to render such diverse financial services for the benefit of Indian Muslims as are permissible under Shariah and practicable legally.

53.5 It was also resolved that the board of theologians should include one or two banking experts while, on the other hand, the banking committee should include a couple of theologians.