Interest Free Banking: If you hear this word, interest-free banking, then you must be happy. But you have thought. that a bank is given. which you have to drive. But what if you do not want to take interest? A question must have arisen in your mind. Those who are banking without interest, how can they be? Actually the banking without interest. It is also known as Islamic banking.
Why is it being discussed
The discussions about it are happening because of this. Because Pakistan has given an ultimatum. We will adopt interest free banking till the year 2027. Pakistan wants to start interest-free banking by the year 2027 under Islamic law. Pakistan’s Finance Minister Ishaq Dhar has given a statement that he will adopt interest-free banking by the year 2027. It is very important to understand why Pakistan has taken this decision.
What is Federal Shariat Court of Pakistan
The Federal Shariat Court in Pakistan. He has taken this decision. That extra interest cannot be charged on the money loan that is given. The interest in Islam. He goes to riba The court has declared riba haram and said that it is completely banned. According to the Shari’a law, taking riba is forbidden. If we talk about Islamic banking, then interest is not charged in it. Rather, they take a share in the business that is done, that is, the bank takes a part of the profit that is made in the business. This is not called interest but share of profit.
Why islamic banking system is not correct
The biggest drawback of Islamic banking is that it is a businessman. He has to give the share of his company as well as the profit also has to be given to the bank. Rather the freedom to take decisions. That too ends completely. Along with this, banks only give loans to businesses and they give loans to businesses that are making profits. Along with this, these banks do not give loans to anyone personally.
When did the discussion happen in India
Raghuram Rajan, the former governor of the State Bank of India (RBI) in India, which is the Islamic banking system. He was suggested. He had said. There are many people who are not able to pay the interest due to which they are unable to take loan. This is the reason Raghuram Rajan advocated this banking model. In the year 2016, RBI had also talked about providing a window in the already working banks on the basis of this model. But in the year 2017, it was rejected and said that everyone has the facility of banking within the country. RBI has also argued. That which is Jan Dhan Yojana. In that, interest is taken as negligible, and money is given to the people who are there. If the Islamic banking system is to be implemented, then the law will have to be changed for this.