SNS ERP Solution for Islamic Banking

Islamic Banking Society

Looking at increasing trend of interest free or islamic banking around the world, SNS System is providing technology edge to Islamic Banking institutions by its ERP solution for banking, which ensures BFS institutions the flexibility to offer a wide range of Sharia compliant products and to create new value added offerings. Supporting a wide range of functions, ERP Solution for Islamic Banking enables coexistence of Islamic and conventional banking on the same platform, which is Suitable for the institutions operating in both areas.
Banking with sharia compliance is not being popular only in muslim dominated countries, even it is also being widely accepted in europe, and other non muslim areas.

Purpose of Islamic Banking

Islamic banking has the same purpose as conventional banking: to make money for the banking institute by lending out capital. But that is not the sole purpose either, adherence to Islamic law and ensuring fair play is also at the core of banking according to the rules of Islam because it forbids simply lending out money at interest, Islamic rules on transactions (known as Fiqh al-Muamalat) have been created to prevent it. The basic principle of this type of banking is based on risk-sharing which is a component of trade rather than risk-transfer which is seen in conventional banking. Concepts such as profit sharing (Mudharabah), safekeeping (Wadiah), joint venture (Musharakah), cost plus (Murabahah), and leasing (Ijar) have been introduced by banking according to Islam.

Sharia Banking and its scope

Recent surveys show that there is a national trend of migration towards Islamic banks in the UAE, although a lack of understanding of how these banks work is holding back further customer growth. That represents good news for these banks because the margins they receive from lending to individuals are higher than those to corporations where the risk is typically less.

It is widely being accepted in the West and other parts of the world and its migration to many countries is a validation of its popularity among the masses.


How to start cooperative society


A cooperative society means, a society registered or deemed to be registered under any law relating to cooperative societies for the time being in force in any State or under the Central act.
Cooperative societies may be governed by the respective State cooperative societies Act or by the Multi-State Cooperative Societies Act, 2002. The societies whose main objective is to serve the interests of its members in a particular State, are governed by the Cooperative Societies Act of that particular State. While, a Society whose main objectives is to serve the interests of its members in more than one State, are governed by the Multi-State Cooperative Societies Act, 2002.

Incoming amount in society:-

1. Society can get the payment from members as member fee and this should be monthly OR annually .
2. Society can create some FD and RD plans for members.

Giving amount to members:-

1. Distribute dividend to member as per his member fee.
2. Distribute interest as per FD & RD plans.

Source of income:-

1. Invest the money in share market OR mutual fund.
2. Distribute the loan and take the interest against loan.

Process for open the society:-

1. The first Step is to get 10 Individuals together who are desirous of forming a Society.
2. A Provisional Committee should be formed and a chief Promoter should be elected from amongst them.
3. A Name for the Society has to be selected.
4. An Application has to be made to the Registration Authority for reservation of Name and a letter to that effect has to be obtained confirming the reservation of Name. The name once reserved is valid for 3 Months.
5. The entrance fees and share capital has to be collected from the prospective members.
6. A Bank account has to be opened in the name of the proposed society as per the directions of the registration Authority. The entrance fees and share money has to be deposited in the bank account and the certificate from the bank has to be obtained in that respect.
7. The registration fees has to be deposited with the Reserve Bank of India and receipted 1challan thereof is to be obtained.
8. The application for registration of the society should be submitted to the Registrar of Societies of the concerned municipal ward. The documents to be submitted for registration are as follows :
       a.) Form No. A in quadruplicate signed by 90% of the promoter members
       b.) List of promoter members
       c.) Bank Certificate
       d.) Detailed explanation of working of the society.
       e.) 4 copies of proposed bye-laws of the society.
       f.) Proof of payment of registration charges.
      g.) Other documents like affidavits, indemnity bonds, any documents specified by the  Registrar also have to be submitted.
9. The Registrar will enter the particulars in register of application maintained in Form “B” and give serial number and issue receipt in acknowledgment of the same.
10. On registration, the Registrar will notify the registration of the Society in the Official Gazette and issue Registration Certificate.

Are looking cooperative society software? please click here

If you want to register society in MP than please click on below link:-

If you want to open society in Uttarakhand, click on below link:-