A Study on Islamic Banking's Growth, Challenges and Potential in India

Author:Riyazuddin*

Abstract:
The possibility of Islamic banking in India is based on two main reasons, namely, (1) India can be a vital and huge market for Islamic banking because of the large Muslim population and (2) Islamic banking is based on interest-free loans, which would be preferred by the Muslim community as well as the non-Muslim community. This paper depicts the real picture of the basic principles and concepts of Islamic banking or institutions and the possibility of Islamic banking in India. This paper shows the different financing modes of Islamic banking and favorable and unfavorable points which are helpful to increase the awareness of Islamic banking among the Muslim and non-Muslim community because India is a potential and significant market for Islamic banking financial institutions. Unfortunately, the banking of Islam has been misinterpreted in India like a religious charitable project limited to poor of the nation and the economically disadvantaged community of Muslims. Even years of effective Islamic banking operations and amazing global expansion haven't been enough to dispel this notion.

Keywords:Key Words: Islamic Banking, Religious Banking, Basic Principles etc.

DOI:10.46333/ijtc/11/1/20

International Journal of Trade & Commerce (Vol: 11 Issue:1)