Demonetization, in spite of all criticism and inconvenience, has been enacted and people are forced to queue up in banks to deposit the two high denomination 500 and 1000 notes and for withdrawing the cash. Muslim like the other fellow religious groups also affected with such sudden announcement but Muslim are struggling more for the replacement of their currencies due to their low penetration of banking. According to 2013 estimates, 63% Muslim have the banking account and 9% having the post office saving account, whereas the national average was 78% for banking account and 14% for post office account. Poverty is also another reason of such misery as majority of Indian Muslim belong to low income group, 63% population earn less than 1.20 Lakhs rupees while only 6% earn above 3.00 lakhs rupees i.e. near to the taxable mark. Demonetization has badly affected this low earning group who are hardly associated with the mainstream banking. Currency crisis caused to the death of around 12 Muslim among the total 55 person during November due to heart attack or by committing suicides. Muslim business also affected with such exercise as they are more associated in artisan and self-employed small scale business which are largely confined in unorganised sector without proper accounting and auditing. Since informal small sector in India is mainly rely on cash transaction for their business, this segment is largely affected with the currency crisis in sustaining of their business.
Muslim are economically lag behind because of low participation in banking and financial institutions. Interest based transaction in mainstream banking is the main reason for low banking participation of Muslim who consider the interest against the Islamic economic principles. RBI is under consideration to start the interest free banking window in scheduled commercial banks so that Muslim can also actively associate with the banking system. Hopefully government would seriously consider about the long-term demand on institutionalise the interest free banking in India.
One of the objective behind the demonetization is to discourage the cash holding pattern by linking all activities with bank accounts. Until the interest free provision, Muslim need to take this opportunity to actively participate in banking sector. They can have the transaction by deposit and withdrawal of actual amount in mainstream commercial banks and can spend the interest amount for philanthropic purposes. Government also intend to encourage the cashless transaction with digital wallets and by use of plastic money. Trend is shifting from mere banking participation to the digital transactions. Without any negativity, Indian Muslim needs to assess their readiness in adoption of next trend of digital transaction.
Difficult to survive in modern economies without the financial literacy while Muslim are below to the national average in the general literacy. Overall literacy rate in India was 73% but it was 69% among the Muslim according to 2011 census. Similar is the ratio of Graduate and above education attainment population, national average was 5.14% while it was 2.47% among Muslim in the year 2011. Literacy trend among Muslim in future also not seems to be much satisfactory, drop out in school education is common due to financial constraint and engagement in economic activities. During the year 2014-15, Muslim share in total enrolment was 14.53% at primary (I-V Classes), 12.61% at upper primary (VI-VIII classes), 10.28% at secondary (IX-X classes), 8.08% at senior secondary (XI-XII) and 4.48% at higher education (Above 12th class). With such literacy and enrolment ratio, Muslim have the difficulties in access of digital banking by their own in coming years.
Indian Muslim, in spite of all criticism, are forced to open the account in mainstream banking after linking the subsidy amount for direct cash transfer scheme into beneficiaries account. Increasing compulsion of banking account in government schemes are caused to the enhance association of Indian Muslim in mainstream banking which is against their traditional approach of total prohibition in joining of banks. Similar would be the environment for digital banking in coming years, Muslim have to take the pre-readiness for the financial literacy in its adoption so that without any sceptical attitude, they can also be economically advanced along with other fellow religious group.
Published at Viewsheadlines.com
Muslim are economically lag behind because of low participation in banking and financial institutions. Interest based transaction in mainstream banking is the main reason for low banking participation of Muslim who consider the interest against the Islamic economic principles. RBI is under consideration to start the interest free banking window in scheduled commercial banks so that Muslim can also actively associate with the banking system. Hopefully government would seriously consider about the long-term demand on institutionalise the interest free banking in India.
One of the objective behind the demonetization is to discourage the cash holding pattern by linking all activities with bank accounts. Until the interest free provision, Muslim need to take this opportunity to actively participate in banking sector. They can have the transaction by deposit and withdrawal of actual amount in mainstream commercial banks and can spend the interest amount for philanthropic purposes. Government also intend to encourage the cashless transaction with digital wallets and by use of plastic money. Trend is shifting from mere banking participation to the digital transactions. Without any negativity, Indian Muslim needs to assess their readiness in adoption of next trend of digital transaction.
Difficult to survive in modern economies without the financial literacy while Muslim are below to the national average in the general literacy. Overall literacy rate in India was 73% but it was 69% among the Muslim according to 2011 census. Similar is the ratio of Graduate and above education attainment population, national average was 5.14% while it was 2.47% among Muslim in the year 2011. Literacy trend among Muslim in future also not seems to be much satisfactory, drop out in school education is common due to financial constraint and engagement in economic activities. During the year 2014-15, Muslim share in total enrolment was 14.53% at primary (I-V Classes), 12.61% at upper primary (VI-VIII classes), 10.28% at secondary (IX-X classes), 8.08% at senior secondary (XI-XII) and 4.48% at higher education (Above 12th class). With such literacy and enrolment ratio, Muslim have the difficulties in access of digital banking by their own in coming years.
Indian Muslim, in spite of all criticism, are forced to open the account in mainstream banking after linking the subsidy amount for direct cash transfer scheme into beneficiaries account. Increasing compulsion of banking account in government schemes are caused to the enhance association of Indian Muslim in mainstream banking which is against their traditional approach of total prohibition in joining of banks. Similar would be the environment for digital banking in coming years, Muslim have to take the pre-readiness for the financial literacy in its adoption so that without any sceptical attitude, they can also be economically advanced along with other fellow religious group.
Published at Viewsheadlines.com
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