Contemporary And Lawful Basics Of Islamic Banking In The Light Of Teaching Of Prohet (SAW)- An Analytical Study

Abstract

Islam is a universal religion and relevant for all ages. Islam has its own social, political and economic principles based on the Qur’an and Sunnah; which are designed for the betterment of mankind. This paper is related to the basic concepts of Islamic Banking with a focus on the Practical issues of Interest (Riba). In Islam, Interest is strictly prohibited contrary to western ways of banking. Hence, since the last couple of years as banking has gained popularity in Pakistan, many people have raised questions on whether the banking system in Pakistan is interest free or not. This is one of the issues addressed in the paper. Moreover,   many western and eastern economists have debated that banking cannot be done without interest. Islam on the contrary proves that interest free banking can be established and also devises a definite method to do so. Shedding light on this issue, this research article also keenly discusses Islamic Banking and its roots according to Sharia and also evaluates the Revolution, significance, Criticism, and Objectives of Islamic Banking.