Asian Journal of Research in Business Economics and Management
Year : 2014, Volume : 4, Issue : 8
First page : ( 1) Last page : ( 19)
Online ISSN : 2249-7307.

Interest Free Banking - A Progressive alternative Financial System for Growing India

Ali O.P.

Lecturer, IBRA College of Technology, Oman

Online published on 6 August, 2014.

Abstract

Islamic banking or Interest free banking as an ethical substitute to conventional banking system has been widely accepted the world over except India. It is a banking system based on Shariah principles which offers the advantage of doing business without the difficulty of interest element. Interest free banking is not only for Muslims but for the whole people, regardless of their religion. Though Islamic banking industry is growing fast worldwide attracting all type of customers irrespective of their religion, it is still struggling to mark its entry in Indian banking sector because of the illusion and myth that it is a religious charitable project limited to the economically subjugated Muslim community. Educating the mass and spreading awareness on the merits of the system is there for essential to make use of it for the inclusive growth and faster economic development of India. Islamic banking and finance industry has crossed regional boundaries and come to be accepted on the global stage, due to the demand for an alternative to western banking products structured along ethically-aware Islamic principles. The present study aims to highlight the potential and prospective of Islamic banking in India. In the era of globalization, even countries outside the Muslim world like UK are opening their economy for fast growing global market of Islamic finance; India should take a positive stand towards interest free banking as it is a major step towards inclusive growth of the country.

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Keywords

Interest free banking, international acceptance, growth rate, Shariah, inclusive growth.

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