Open AccessIslamic Banking, A Potential Banking System for India
Author(s) -
Mohammed Imran Kazi
Publication year - 2021
Publication title -
shanlax international journal of arts, science and humanities (online)
Language(s) - English
Resource type - Journals
ISSN - 2582-0397
DOI - 10.34293/sijash.v8is1-feb.3952
Subject(s) - islam , business , islamic banking , retail banking , population , context (archaeology) , transparency (behavior) , financial services , financial system , payment , commerce , accounting , finance , law , political science , geography , demography , archaeology , sociology
Islamic banking is one of the fastest developing banking systems in the financial sector, with vast opportunities worldwide. Islamic banking operates by focussing on complete transparency, ethical investment avenues, co-operative businesses, risk sharing that attract not only the followers of Islam but people from other faiths also. Considering the growth Internationally–Islamic banking has become one of the fastest-growing segments in the International markets as well as Capital markets. With around 195 million Muslims approximately, India’s Muslim population is about the world’s third-largest and the world’s largest Muslim-minority population. India is home to 10.3% of the world’s Muslim population. Islamic banking system operates strictly by the Shariah laws which prohibit collection or payment of Interest, known as “Riba”. The Islamic banking system also prohibits investments in businesses or ventures that are considered Unlawful or Haraam. Risk bearing is one of the most basic principles based on which the Islamic banking system works, which relates to trading rather than risk transfer as in the case of conventional banking. The research papers aim at explaining the services of Islamic banking and various principles of Islamic banking. The research also intends to put forward the benefits and drawbacks of Islamic banking in the Indian context.