Islamic banking and Financial system, Islamic banking in India, Islamic Banks in India

 

Islamic banking and Financial system, Islamic banking in India, Islamic Banks in India

 

Islamic banking and finance, Islamic banking system in India and USA

Introduction to Islamic banking and finance

The people often thinking that whether the banking system is permissible  in Islam or Not  How Islamic banking being promoted without the interest, regarding the interest it is the foundational base of every bank How Islamic banking maintains all such things, what are those Islamic  sharia rules under which Islamic banking achieved its progress. The Islamic sharia is entirely against the system of interest Riba The Prophet Muhammad saw prohibited gaining riba as considered it as great evil, Now there are the many questions in the minds of people How interest free banking works how it grows and achieve progress. Let’s know how Islamic banking works

Islamic Financial System

In Islam the commercial, federal or conventional banking is not allowed because it is all entirely based on the system of Riba is unlawful in Islam, having great prohibitions and interdictions in Quran and hadith, But in Islam it promotes the islamic financial system or Islamic banking based on the concept of Mudharaba means partnership as its basis. In Islam it is to be suggested that there should be no banking system based on interest . The interest free economy has utmost benefits for building up healthy society it works well gives big sustenance to the poors in the society,

The Islamic Financial system, if the banking system will work on the basis of the concept of mudharaba partnership so through this system all exploitation of modern banking will be eliminated automatically

How do Islamic banks makes money,

in commercial banking system the people deposits the money consequently at the end of financial year they are getting 4% to 6 % interest in return and other 90% profit which commercial banks retains for themselves, it is all kind of exploitation similarly when we deposit the money in commercial banks the people couldn’t know where their money are being utilized all choices remains in the hands of bank authorities for investment, so we could know whether the bank invests our money in lawful ways or unlawful, the investors have no any control on it,

Similarly in  the Islamic banking system, the bank accepts the deposits from the people as safekeeping and profit sharing it works same as like commercial banking but rules are different in both commercial banking is based on interest and  provides minimum profit to their investors there is no mutual loss and gain but in Islamic banking it is interest free provides both debit and credit facilities to its partners there is mutual gain and loss profit, the depositors can check their money where bank utilized and the depositors have authority to check the progress of work of bank, the Islamic banks invest the money in lawful ways as per the sharia rules at the end of financial year they are giving equal share to their investors as per their investment.

Principles of Islamic banking

The Islamic banking in real sense it is based on many concepts such as

MUDHARABA According to Islamic scholars and jurists of Islam defines this term as

Mudharaba mean it is contract between the two or more partners, or one gives his own property to another for carring  out the business wherein the profit is to be shared ½ or 1/3 as per investment so both the partners share profit and loss equally, but is not certain whenever loss happens in the business its impact will fell only one party  no, in Islamic financial system there is equal loss, and profit.

MUDHARIB A person or a agent to carrying out business

Islamic Development bank Jeddah

  IDB ISLAMIC DEVELOPMENT BANK JEDDAH is leading financial institution in the Muslim world having 57 shareholding member states associated with it, the bank was formed in 1973 and came into existence in 1975 

Who is the current president of Islamic development bank jeddah IDB  Bandar Al Hajjar, there are almost 932 employees working in IDB Jeddah Where is head quarter of Islamic development bank Jeddah Saudi Arabia.

Islamic Banks in India, 

the Islamic banking has huge potential and greatest scope in India as the country has almost 14 percent Muslim population initially there were some islamic banks existed in the country such as Islamic bank kerla Islamic development bank Hyderabad,  and Al ameen Islamic financial and investment corporation India limited  was a big Islamic financial institution it’s head quarter situated at banglore  but unfortunately this financial institution is currently under liquidation

Islamic banking jobs

There are many person in India who did massive degrees in banking and finance still are unemployed those  have MBA  degrees are willing to work in Islamic banking institutions in every year the IDB jeddah and it’s associated banks advertised the recruitment notifications for  Islamic banking jobs a person having mba degree or having the degree in Islamic banking and finance can get a huge amount monthly salary there are many countries who offered Islamic banking jobs Such as Islamic bank of Malaysia, IDB jeddah Al Shamal Islamic bank sudan, DMI TRUST Swezerland,  faisal Islamic bank egypt Qatar Islamic bank, etc there are many other banks where any person can apply for a job,

The Islamic sharia banking is something different from the federal and commercial banking the rules regarding the credit and debit of these Islamic financial institution have some similarities but in matter of transactions and businesses activities both are performing their functions separate. Thus Islamic banking has a great aim that is circulation of money help to destitute societies uplift the poor ones not to exploite them for selfish interests consequently Islam has adopted the system of baitul mal treasury in order to wipeout the Destituteness from the societies and communities, similarly through Islamic banking one can get enormous benefits on lawful basis. If all countries in the world will adopt the concept of Islamic banking and financial system and build up the finance system on its basis, Definitely the poverty and unemployment will disappear in all countries, now a day many countries are trying to adopt these islamic financial system in future there might be lot of scope of it.