Interest-Free Banking Or Islamic Banking

Interest-Free Banking Or Islamic Banking

Interest-Free Banking Or Islamic Banking

150 Words

Modern banks play a vital role in the economy of the country. Bank carries its business in terms of money it collects money as deposits from the people and gives the same on loan to the traders, businessman, producers, and entrepreneurs.

The present functioning of modern banking is based on a fixed rate of interest it has no doubt contributed a lot to the expansion of the country’s production capacity and services but at the same time, it is responsible for causing voids and imbalances in society. This arrangement creates class differences in our society and one of the main causes of inflation.

The Holy Quran has prohibited the interest (Riba) in all forms. Interest is declared Haram by the Holy Prophet (peace be upon him). It cannot be adopted instantly in such a complicated and underdevelop state of affairs, but we can get rid of this interest system moderately.

250 Words

Modern banks play a vital role in the economy of the country. Bank carries its business in terms of money it collects money as deposits from the people and gives the same on loan to the traders, businessman, producers, and entrepreneurs.

The present functioning of modern banking is based on a fixed rate of interest it has no doubt contributed a lot to the expansion of the country’s production capacity and services but at the same time, it is responsible for causing voids and imbalances in society. This arrangement creates class differences in our society and one of the main causes of inflation.

The tragedy is that the common man continuously suffering. We the Muslims of the Islamic Republic of Pakistan have failed to involve a system in order to ameliorate his lot. There remains hardly any doubt that the fixed interest banking has been mainly responsible for price hike and inflation.

The Holy Quran has prohibited the interest (Riba) in all forms. Interest is declared Haram by the Holy Prophet (peace be upon him). With so clear a commandment of the Holy Quran and also the clear-cut direction of the Holy Prophet peace be upon him there does not remain any room or justification for the continuation of the interest in an Islamic state.

There are many you think that interest-free banking is not feasible in our country it is possible in which countries which can meet the expenses of the banking It cannot be adopted instantly in such an underdeveloped state of affairs, but we can get rid of this interest system moderately.

350 Words

Modern banks play a vital role in the economy of the country. Bank carries its business in terms of money it collects money as deposits from the people and gives the same on loan to the traders, businessman, producers, and entrepreneurs.

The present functioning of modern banking is based on a fixed rate of interest it has no doubt contributed a lot to the expansion of the country’s production capacity and services but at the same time, it is responsible for causing voids and imbalances in society. This arrangement creates class differences in our society and one of the main causes of inflation.

The tragedy is that the common man continuously suffering. We the Muslims of the Islamic Republic of Pakistan have failed to involve a system in order to ameliorate his lot. There remains hardly any doubt that the fixed interest banking has been mainly responsible for price hike and inflation.

The Holy Quran has prohibited the interest (Riba) in all forms. Interest is declared Haram by the Holy Prophet (peace be upon him). With so clear a commandment of the Holy Quran and also the clear-cut direction of the Holy Prophet peace be upon him there does not remain any room or justification for the continuation of the interest in an Islamic state.

There are many you think that interest-free banking is not feasible in our country it is possible in which countries that can meet the expenses of the banking. In our economy, interest-free banking will be only an ineffectual exercise. It will have an adverse effect on our already deteriorating economy. It will not be able to come to any further shocks or jolts with this king of experimentation.

After careful consideration of all these and other allied points, our government took a bold step to abolish interest from the banking system of the country to abolish interest participation on a profit and loss basis that has been introduced in the banks which are encouraged to operate on a no-interest basis. It cannot be adopted instantly in such an underdeveloped state of affairs, but we can get rid of this interest system moderately.

450 Words

Modern banks play a vital role in the economy of the country. Bank carries its business in terms of money it collects money as deposits from the people and gives the same on loan to the traders, businessman, producers, and entrepreneurs.

The present functioning of modern banking is based on a fixed rate of interest it has no doubt contributed a lot to the expansion of the country’s production capacity and services but at the same time, it is responsible for causing voids and imbalances in society. This arrangement creates class differences in our society and one of the main causes of inflation. The existing banking service entertains only the small privilege class and all facilities of banking credits are extended only to it.

It also creates the monopolistic hold on banking operations by the privileged class the proper development of the country is productive resources both agricultural and industrial as well as the expansion of numerous other services that have lost its direction and remained and achieved. It gave birth to the capitalistic system of the economy with all its evils.

The tragedy is that the common man continuously suffering. We the Muslims of the Islamic Republic of Pakistan have failed to involve a system in order to ameliorate his lot. There remains hardly any doubt that the fixed interest banking has been mainly responsible for price hike and inflation.

The Holy Quran has prohibited the interest (Riba) in all forms. Interest is declared Haram by the Holy Prophet (peace be upon him). With so clear a commandment of the Holy Quran and also the clear-cut direction of the Holy Prophet peace be upon him there does not remain any room or justification for the continuation of the interest in an Islamic state.

There are many you think that interest-free banking is not feasible in our country it is possible in which countries that can meet the expenses of the banking. In our economy, interest-free banking will be only an ineffectual exercise. It will have an adverse effect on our already deteriorating economy. It will not be able to come to any further shocks or jolts with this king of experimentation.

After careful consideration of all these and other allied points, our government took a bold step to abolish interest from the banking system of the country to abolish interest participation on a profit and loss basis that has been introduced in the banks which are encouraged to operate on a no-interest basis. This enables people to forge ahead in life on the strength of the Personal qualities and competence rather than their wealth. It cannot be adopted instantly in such an underdeveloped state of affairs, but we can get rid of this interest system moderately.

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