Say proudly, I AM AN INDIAN.

Facts to Make INDIA Proud - Today, 12:09 AM
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Facts to Make INDIA Proud

Q. Who is the co-founder of Sun Microsystems?
A. Vinod Khosla


Q. Who is the creator of Pentium chip (needs no introduction as 90% of the todays computers run on it)?
A. Vinod Dahm

Q. Who is the founder and creator of Hotmail (Hotmail is world's No.1 web based email program)?
A. Sabeer Bhatia


Q. Who is the president of AT & T-Bell Labs (AT & T-Bell Labs is the creator of program languages such as C, C++, Unix to name a few)?
A. Arun Netravalli


Q. Who is the GM of Hewlett Packard?
A. Rajiv Gupta


Q. Who is the new MTD (Microsoft Testing Director) of Windows 2000, responsible to iron out all initial problems?
A. Sanjay Tejwrika

Q. Who are the Chief Executives of CitiBank, Mckensey & Stanchart?
A. Victor Menezes, Rajat Gupta, and Rana Talwar.

Q. We Indians are the wealthiest among all ethnic groups in America, even faring better than the whites and the natives.
There are 3.22 millions of Indians in USA (1.5% of population). YET,
38% of doctors in USA are Indians.
12% scientists in USA are Indians.
36% of NASA scientists are Indians.
34% of Microsoft employees are Indians.
28% of IBM employees are Indians.
17% of INTEL scientists are Indians.
13% of XEROX employees are Indians.



Some of the following facts may be known to you. These facts were recently published in a German magazine, which deals with WORLD HISTORY FACTS ABOUT INDIA.

1. India never invaded any country in her last 1000 years of history.

2. India invented the Number system. Zero was invented by Aryabhatta.


3. The world's first University was established in Takshila in 700BC. More than 10,500 students from all over the world studied more than 60 subjects. The University of Nalanda built in the 4th century BC was one of the greatest achievements of ancient India in the field of education.

4. According to the Forbes magazine, Sanskrit is the most suitable language for computer software.

5. Ayurveda is the earliest school of medicine known to humans.

6. Although western media portray modern images of India as poverty striken and underdeveloped through political corruption, India was once the richest empire on earth.


7. The art of navigation was born in the river Sindh 5000 years ago. The very word Navigation is derived from the Sanskrit word NAVGATIH.

8. The value of pi was first calculated by Budhayana, and he explained the concept of what is now known as the Pythagorean Theorem. British scholars have last year (1999) officially published that Budhayan's works dates to the 6th Century which is long before the European mathematicians.


9. Algebra, trigonometry and calculus came from Inida. Quadratic equations were by Sridharacharya in the 11th Century; the largest numbers the Greeks and the Romans used were 106 whereas Indians used numbers as big as 1053.

10. According to the Gemological Institute of America, up until 1896, India was the only source of diamonds to the world.


11. USA based IEEE has proved what has been a century-old suspicion amongst academics that the pioneer of wireless communication was Professor Jagdeesh Bose and not Marconi.

12. The earliest reservoir and dam for irrigation was built in Saurashtra.


13. Chess was invented in India.

14. Sushruta is the father of surgery. 2600 years ago he and health scientists of his time conducted surgeries like cesareans, cataract, fractures and urinary stones. Usage of anaesthesia was well known in ancient India.


15. When many cultures in the world were only nomadic forest dwellers over 5000 years ago, Indians established Harappan culture in Sindhu Valley (Indus Valley Civilisation).

16. The place value system, the decimal system was developed in India in 100 BC.




Quotes about India.

We owe a lot to the Indians, who taught us how to count, without which no worthwhile scientific discovery could have been made.
Albert Einstein.



India is the cradle of the human race, the birthplace of human speech, the mother of history, the grandmother of legend and the great grand mother of tradition. Mark Twain.



If there is one place on the face of earth where all dreams of living men have found a home from the very earliest days when man began the dream of existence, it is India.
French scholar Romain Rolland.



India conquered and dominated China culturally for 20 centuries without ever having to send a single soldier across her border.
Hu Shih
(former Chinese ambassador to USA)



ALL OF THE ABOVE IS JUST THE TIP OF THE ICEBERG, THE LIST COULD BE ENDLESS.
BUT, if we dont see even a glimpse of that great India in the India that we see today, it clearly means that we are not working up to our potential; and that if we do, we could once again be an evershining and inspiring country setting a bright path for rest of the world to follow.
I hope you enjoyed it and work towards the welfare of INDIA.

Say proudly, I AM AN INDIAN.

Islamic Banking! Now, What is That?

Islamic Banking! Now, What is That?
In a move that has the potential of dramatically alter banking, the government has asked the Reserve Bank of India (RBI) to explore ways to introduce Islamic banking in the country.

Recently, the finance ministry had sounded out the RBI on the subject of introducing Islamic banking in India. The central bank has already formed a senior team to look into the matter. The group is headed by Anand Sinha, chief general manager in charge, department of banking operations and development, and includes senior bankers from State Bank of India and few other government and foreign banks. Some of the foreign banks operating in India already offer Islamic banking products in West Asia and Europe. Interestingly, banking products like these not only exist in West Asian countries, but have also caught on in advanced markets like the UK.

What is Islamic banking?
Islamic banking has the same purpose as conventional banking except that it operates in accordance with the rules of the Shariah, known as Fiqh al-Muamalat (Islamic rules on transactions).
The basic principle of Islamic banking is sharing of profit and loss and prohibition of riba (interest). Amongst the common Islamic concepts used in Islamic banking are profit sharing (mudarabah), safekeeping (wadiah), joint venture (musharakah), cost plus (murabahah) and leasing (ijarah).
In an Islamic mortgage transaction, instead of loaning buyer money, a bank might buy an item from a seller, and sell it to the buyer at a profit, while allowing the buyer to pay the bank in installments. The higher cost might include what would in non-Islamic arrangements have been charged as interest, but there could not be additional penalties for late payment. This arrangement is called murabahah. Another approach is ijara wa iqtina, which is similar to real estate leasing.
In business deals, there are several other approaches to handle a lack of interest. Most important is musharaka, which is equity financing. Further mudaraba means if one entrepreneur is doing the work and the other is giving the funds to finance it then both profit and risk must be shared. Such participatory arrangements between capital and labour reflect the Islamic view that the borrower must not bear all the risk/cost of a failure, as it is Allah who determines that failure, and intends that it fall on all those involved.
Islamic banking is restricted to Islamically acceptable deals, which exclude e.g. alcohols, pork, gambling, etc. Thus ethical investing is the only acceptable investing, and moral purchasing is encouraged

How do these banks operate in India?
There are several Baitul Mals working in cities as well as in villages. Only 10 to 15 Islamic banks with deposits of about Rs 75 crore are operating all over the country in various states. They are actually non-banking finance companies (NBFCs) which work on profits/loss basis. Islamic banks by and large cater to the needs of local area except a few of them operating across districts or states. Their sources of funds are limited and as a result these banks have to operate on small scale missing the economies of scale.
Islamic banks in India provide housing loan, on the basis of co-ownership, venture finance on mudarabah basis as well as on musharaka basis and consumers loans. Some banks finance transports also on the mark up basis via hire purchase. Education finance and skill development finance is also provided by them. Investments are made in government securities, small savings schemes or units of mutual funds. Investment in shares of companies is also made by some Islamic banks. Hire purchase and lease finance are other source of investments.

What are the regulations for Islamic banking in India?
Islamic banks in India do not function under banking regulations. They are licensed under Non Banking Finance Companies Reserve Bank Directives 1997 RBI (Amendment) Act 1997, and operates on profit and loss based on Islamic principles. RBI has introduced compulsory registration system. In the Monetary and Credit Policy for the year 1999-2000, it was proposed that in respect of new NBFCs, which seek registration with the RBI and commence the business on or after April 21, 1999, the requirement of minimum level of net owned funds (NOF) will be Rs 2 crore.
What are the current practices in Islamic banking globally?
Generally speaking, all interest-free banks agree on the basic principles. However, individual banks differ in their application. These differences are due to several reasons including the laws of the country, objectives of the different banks, individual bank’s circumstances and experiences, the need to interact with other interest-based banks, etc. The three important features are the deposits, modes of financing and services.

What are the different deposits available?
All the Islamic banks have three kinds of deposit accounts: current, savings and investment.
1. Current accounts
Current or demand deposit accounts are virtually the same as in all conventional banks. Deposit is guaranteed.
2. Savings accounts
Savings deposit accounts operate in different ways. In some banks, the depositors allow the banks to use their money but they obtain a guarantee of getting the full amount back from the bank. Banks adopt several methods of inducing their clients to deposit with them, but no profit is promised. In others, savings accounts are treated as investment accounts but with less stringent conditions as to withdrawals and minimum balance. Capital is not guaranteed, but the banks take care to invest money from such accounts in relatively risk-free short-term projects.
3. Investment account
Investment deposits are accepted for a fixed or unlimited period of time and the investors agree in advance to share the profit (or loss) in a given proportion with the bank. Capital is not guaranteed.

What are the different modes of financing?
Banks adopt several modes of acquiring assets or financing projects. But they can be broadly categorised into three areas: investment, trade and lending
1. Investment financing
This is done in three main ways: a) Musharaka where a bank may join another entity to set up a joint venture, both parties participating in the various aspects of the project in varying degrees. Profit and loss are shared in a pre-arranged fashion. This is not very different from the joint venture concept. The venture is an independent legal entity and the bank may withdraw gradually after an initial period. b) Mudarabha where the bank contributes the finance and the client provides the expertise, management and labour. Profits are shared by both the partners in a pre-arranged proportion, but when a loss occurs the total loss is borne by the bank. c) Financing on the basis of an estimated rate of return. Under this scheme, the bank estimates the expected rate of return on the specific project it is asked to finance and provides financing on the understanding that at least that rate is payable to the bank. If the project ends up in a profit more than the estimated rate the excess goes to the client. If the profit is less than the estimate the bank will accept the lower rate. In case a loss is suffered the bank will take a share in it.

2. Trade financingThis is also done in several ways.
The main ones are: a) Mark-up where the bank buys an item for a client and the client agrees to repay the bank the price and an agreed profit later on. b) Leasing where the bank buys an item for a client and leases it to him for an agreed period and at the end of that period the lessee pays the balance on the price agreed at the beginning and becomes the owner of the item. c) Hire-purchase where the bank buys an item for the client and hires it to him for an agreed rent and period, and at the end of that period the client automatically becomes the owner of the item. d) Sell-and-buy-back where a client sells one of his properties to the bank for an agreed price payable now on condition that he will buy the property back after certain time for an agreed price. e) Letters of credit where the bank guarantees the import of an item using its own funds for a client, on the basis of sharing the profit from the sale of this item or on a mark-up basis.

3. Lending
The main forms of lending are: a) Loans with a service charge where the bank lends money without interest but they cover their expenses by levying a service charge. This charge may be subject to a maximum set by the authorities. b) No-cost loans where each bank is expected to set aside a part of their funds to grant no-cost loans to needy persons such as small farmers, entrepreneurs, producers, etc and to needy consumers. c) Overdrafts also are to be provided, subject to a certain maximum, free of charge.

What other services are offered by such banks?
Other banking services such as money transfers, bill collections, trade in foreign currencies at spot rate, etc where the bank’s own money is not involved are provided on a commission or charge basis.

What are the deficiencies?
To start with, they have not developed adequate internal control system, as a result their accounting system is not very transparent. A number of times they are not able to follow the directives of regulatory authorities pertaining to deposit acceptance from public. For instance, they hardly go for credit rating. They do not submit required information and data to Reserve Bank of India. Their monitoring system warrants appointment of technical people familiar with reporting system. It is also observed that accounting practices needs to be learned by the officials of these banks. Lack of skilled staff, professionals and infrastructure frustrate their effort to expand and enlarge their operations.

What are major issues and constraints in Islamic banking?
The biggest issue which is a permanent hurdle for Islamic banks operating in countries with interest-based banking is that they cannot function as banks unless powers of issuing cheques are given to them. They cannot be members of settlement/clearing house unless they accept two conditions regarding their liabilities and assets like conventional banks that have to keep fractional cash reserve with the central bank and statutory liquid assets in their assets. Thus banks in India have to maintain deposit account with the RBI over which they get interest. The SLR includes government and approved securities. A bank licensed by the RBI becomes part of the monetary system, which means it can create money by deposit generation through deposit acceptance. Since these assets are interest based, Islamic bank cannot hold them. Consequently, the central bank cannot act as the lender of last resort because such accommodation by the monetary authority is also interest based. Islamic banks cannot interact with conventional banks based on principles of interest.The last but not the least, Islamic banking has been constantly in short-term and medium-term operations though some of them are undertaking long-term finance also. It is understood that inability to evaluate projects profitability has tended to act against investment financing. Some borrowers frustrate the banks appraisal efforts as they are not reluctant to provide full disclosures of their business. Moreover, the borrowers do not observe business ethics which make it difficult to establish close bank-clientele relationship — a condition for successful Islamic banking. As a result a number of Islamic banks have been closed during the recent years.(economictimes.indiatimes.com/articles-July 11, 2005)

Insurance: Mustafa Al-Zarqa's Views
By Adil Salahi
In its modern form, insurance was introduced in Muslim countries when many of them were occupied by Western powers.Every now and then I get questions about life insurance. Is life insurance permissible from the Islamic point of view? Most of the readers want to know. The attraction to take a life policy, says, some of the readers, seems too strong when one considers the need for safety in life. My answer to all such questions is:Insurance has become an essential part of business throughout the world. Because there are too many risks that could affect people’s lives and welfare, insurance tries to alleviate the adverse effects of such risks. Insurance has become a highly sophisticated business, with large companies offering cover against a wide range of risks. People take out insurance policies to protect their homes, furniture, vehicles, and jobs, and they also take out health and life insurance.In its modern form, insurance was introduced in Muslim countries when many of them were occupied by Western powers, or when they came under Western influence. In some cases, its introduction was delayed in a country until its international business flourished. Like every thing that came with a “colonial” or Western color, insurance was first viewed by Muslim scholars with grave suspicion. A verdict of disapproval was common to most things thought to be introduced by non-Muslims.Yet insurance is not new, and it was not invented by the Western civilization. The idea of collaboration to reduce the effects of disaster that might hit one or more in a community is as old as human society. In many Muslim cities, business people collaborated, establishing funds to look after anyone of them who might suffer a huge trade loss, as could happen when a cargo ship sank during a storm. While these early efforts catered for a specific risk, the idea behind them is the same as that behind insurance.In the last few decades, a number of eminent scholars discussed insurance at length, arriving at divergent views. One of the best theses written on the subject was published in a book in Arabic by the late Prof. Mustafa Al-Zarqa, who ranked high among the top scholars of the twentieth century. His work is very scholarly, as it shows thorough understanding of the insurance system and how it works. He arrives at a verdict of permissibility of all types of insurance, including life insurance. He points out that insurance inevitably involves an element of gharar, which in Islamic terminology means the sale of an “undefined” or unspecified product. However, he explains that it is rather marginal, and as such it is overlooked, as in other types of transactions involving marginal gharar.There are two main types of life insurance: Term policy and endowment policy. The term policy involves the payment by the insured of modest premiums over an agreed period, say, 20 years, in return for the benefit of his family receiving an agreed large sum of money in the case of his death during that period. If the insured remains alive at the end of the policy, it lapses and he gets nothing. What the insured actually buys with his payments is the peace of mind he gets from the knowledge that should he die, his dependants will have a large sum of money to see them through life until, say, his young children came of age and were able to look after themselves.The endowment policy involves the payment of larger premiums which are invested by the insurance company. When the policy matures, the insured receives the sum assured as well as any share of profits to which he may be entitled under the terms of investment made on his behalf by the insurance company.Both types are permissible from the Islamic point of view, as explained by Professor Al-Zarqa, provided that the insured makes sure that the insurance company invests in legitimate business. If the insurance company invests in what Islam forbids, then taking out its policies becomes forbidden as a result.(www.arabnews.com March 4, 2005) The opinion on Insurance are Prof. Mustafa Al-Zarqa’s own views

Now, Islamic Insurance from LIC
Mumbai
After Islamic banking, it’s the turn of Islamic insurance. Even as the Reserve Bank of India is exploring Islamic banking opportunities for Indian banks, the Life Insurance Corporation of India has set the ball rolling on takaful (Islamic insurance).LIC’s new international joint venture company - Indo-Saudi Insurance Company — will be the first to introduce takaful. This Arabic word means ‘guaranteeing each other’ or joint guarantee.“The entire pricing will be different as the benefits differ from conventional insurance policies,” according to LIC Managing Director, K Mehrotra. Its actuarial team has started working on the pricing mechanism and senior officials have been sent to Saudi Arabia to look into the product, he added.Takaful can be described as cooperative insurance where policyholders contribute a certain amount of money to a common pool. Each member pays his subscription (premium) to help those that need assistance. To some extent, it resembles the chit funds that operate mainly in southern India.The purpose of takaful is not to profit, but to support the belief of “bearing each other’s burden”. Losses are divided, while liabilities spread across the community pooling system. The idea is not to derive any benefits at the cost of others. Instead, it eliminates uncertainty in terms of premium and compensation.“Takaful is a Shari’ah compliant product,” said Mehrotra. It is necessary for LIC to comply with local laws of the land when it starts operations in Saudi Arabia.While LIC will offer a range of insurance products like endowment, money-back, single premium policies, among others, “the returns would need to be inbuilt into the pricing, and cannot be called bonus or profits,” said the managing director.Today LIC announces annual bonuses depending on its investment performance. Under Takaful plans, it would need to build in the possible profits, Mehrotra pointed out.

Islamic banking can attract trillions of dollars: expert

CHENNAI: Introduction of Islamic banking in India can attract trillions of dollars belonging to Muslims and now invested in the United States and the west Europe, according to an expert in Islamic banking.
People of the faith, particularly those in West Asia, are looking for alternative investment destinations, fearing the U.S. will continue with its uneconomic retaliatory measures for the September 11, 2001 attacks, said Monzer Kahf, a financial and investment consultant in the U.S.
The flow of such funds out of the U.S. and west Europe had begun.
Though Singapore recently amended its laws to introduce Islamic banking, India would benefit more, since it was a production base, , he told an interactive session on `interest free banking and finance,' organised here on Friday by Jamaat-E-Islami Hind.
Dr. Kahf had drafted Shariah contents of Islamic finance agreements, by-laws and operational systems for Islamic financial institutions in the U.S. He won the Islamic Development Bank prize for Islamic Economics 2001 and served in the U.N. Institute of Planning in Damascus and the Islamic Development Bank in Jeddah.
Though there was no concept of interest on the loans extended under the Islamic banking system, it still was not a case of free lunch or charity.
"We are talking of money ... not ... of loans," he said.
The concept was based on a different paradigm. Islamic banking started in 1973. A year later the first bank was formed. The total assets of the Islamic banks world over were $300 billion.
According to Mohammed Ismail Shariff, a director of Kuwait Finance House, which is the first wholly foreign owned Islamic bank in Malaysia, non-Muslims accounted for a majority of the customers of such banks.
The Islamic banks were essentially engaged in major financing.
H. Abdur Raqeeb, president, Tamil Nadu and Pondicherry zone, Jamaat-E-Islami Hind, said the Reserve Bank of India had instructed the Ministry of Finance to look into the possibility of launching Islamic banking.

This is why INDIA shining.

An Indian man walks into a bank in New York City and asks for the loan officer. He tells the loan officer that he is going to India on business for two weeks and needs to borrow $5,000. The bank officer tells him that the bank will need some form of security for the loan, so the Indian man hands over the keys and documents of new Ferrari parked on the street in front of the bank. He produces the title and everything checks out. The loan officer agrees to accept the car as collateral for the loan. The bank's president and its officers all enjoy a good laugh at the Indian for using a $250,000 Ferrari as collateral against a $5,000 loan.. An employee of the bank then drives the Ferrari into the bank's underground garage and parks it there. Two weeks later, the Indian returns, repays the $5,000 and the interest, which comes to $15.41. The loan officer says, "Sir, we are very happy to have had your business, and this transaction has worked out very nicely, but we are a little puzzled. While you were away, we checked you out and found that you are a multi millionaire. What puzzles us is, why you would bother to borrow "$5,000”?The Indian replies:"Where else in New York City can I park my car for two weeks for only $15.41 and expect it to be there when I return'"Ah, the mind of the Indian... This is why India is shiningI am very proud. Because I am also an Indian.

India unveils climate change plan

The Indian government has unveiled a national action plan to confront the threat posed by climate change.
Prime Minister Manmohan Singh said the plan envisaged a gradual shift to greater reliance on sustainable sources of energy.
Mr Singh said the development of India's capacity to tap solar power would be central to the strategy.
But the prime minister made no commitment to cut his country's carbon emissions which are predicted to rise.
Solar power
"Our vision is to make India's economic development energy efficient," said Mr Singh as he released details of the plan in the Indian capital, Delhi.
"Our people have a right to economic and social development and to discard the ignominy of widespread poverty."
The prime minister said that over time India must shift from economic activity based on fossil fuels to one based on non-fossil fuels, and from reliance on non-renewable and dwindling sources of energy to renewable ones.

Greenpeace says India could face a major humanitarian crisis
"In this strategy, the sun occupies centre stage, as it should, being literally the original source of all energy.
"We will pool all our scientific, technical and managerial talents, with financial sources, to develop solar energy as a source of abundant energy to power our economy and to transform the lives of our people," Mr Singh said.
"Our success in this endeavour will change the face of India."
The action plan, however, makes no commitment to cut India's carbon emissions.
India's government says that it must strive to lift much of the country's population out of poverty.
It argues that its carbon emissions per head of population are only a fraction of those of rich countries.
A recent Greenpeace report on climate change warned that if greenhouse gas emissions continued to grow at their present rate, South Asia could face a major humanitarian crisis.
It estimates that 75 million people in Bangladesh would lose their homes. About 45 million people in India would also become "climate migrants".