1. PRESENTED BY:-
MH.SHAHBAZ FAROOQUI

2.  Islamic banking is banking or banking activity that is
consistent with the principles of sharia and its practical
application through the development of Islamic economics.
 Sharia prohibits the fixed or floating payment or acceptance
of specific interest or fees (known as riba or usury) for loans
of money.
 Investing in businesses that provide goods or services
considered contrary to Islamic principles is
also haraam ("sinful and prohibited").

3. Islamic financial transaction
terminology
 Bai' al 'inah (sale and buy-back agreement)
Bai' al inah is a financing facility with the underlying buy and
sell transactions between the financier and the customer.
 Bai' bithaman ajil (deferred payment sale)
This concept refers to the sale of goods on a deferred
payment basis at a price, which includes a profit margin
agreed to by both parties.

4.  Mudarabah
"Mudarabah" is a special kind of partnership where one
partner gives money to another for investing it in a
commercial enterprise.
 Murabahah
This concept refers to the sale of goods at a price, which
includes a profit margin agreed to by both parties.
 Bai Salam
Bai Salam means a contract in which advance payment is
made for goods to be delivered later on

5.  Hibah (gift)
This is a token given voluntarily by a debtor to a debtor in
return for a loan.
 Ijarah
Ijarah means lease, rent or wage.
 Musharakah (joint venture)
Musharakah is a relationship between two parties or more
that contribute capital to a business and divide the net profit
and loss pro rata

6.  Qard Hassan / Qardul Hassan (good loan/benevolent loan)
This is a loan extended on a goodwill basis, and the debtor is
only required to repay the amount borrowed.
 Sukuk (Islamic bonds)
Sukuk, plural of Sakk, is the Arabic name for financial
certificates that are the Islamic equivalent of bonds.

8. Riba
 The word "Riba" means interest, usury, excess, increase or
addition.
 According to Shariah terminology, implies any excess
compensation without due consideration (consideration does
not include time value of money).
 The definition of riba in classical Islamic jurisprudence was
"surplus value without counterpart", or "to ensure equivalency
in real value", and that "numerical value was immaterial."

10.  How do you perceive the recent Kerala High Court order
regarding Islamic banking?
 What is the future of Islamic banking in India?
 In simple terms what is Islamic banking and how it
can be beneficial for common man?
 Is the term Islamic the main obstacle for the popularity of
Islamic Banking, if so how can you convince others?
 How a business man will get assistance from
Islamic banking for fund raising?

11. The main difference between Islamic and conventional:-
 Banking is that Islamic teaching says that money itself has no
intrinsic value, and forbids people from profiting by lending
it, without accepting a level of risk –
 In other words, interest (known as "riba") cannot be charged.
 To make money from money is prohibited – wealth can only be
generated through legitimate trade and investment.
 Any gain relating to this trading is shared between the person
providing the capital and the person providing the expertise.

12. Progress of Islamic Banking Themes in India
 There is a growing awareness about the benefits of Islamic
Banking concepts among Indian financial sector also.
 It is being increasing felt that there is an enormous potential
market for Islamic banking products in India.
 As we know Islamic banking prohibits use of money for
activities related to gambling and wine as well as prohibits
interest-based lending.
 Islamic Banking can help India by providing long term funds
for infrastructure development.

13.  Islamic banking will provide financial alternatives to 170
million Indian Muslims who are second largest population
after Indonesian Muslims, of which 70% to 80% who do not
deposit money in banks because of religious beliefs.
 Finance Minister P. Chidambaram and welcomed this new
idea after meeting a delegation of Bankers.
 Palami Manickam said that Islamic banking addresses the
concerns of the poor and helps in building a „more just
adaptable socio-economic order‟.
 The Life Insurance Corporation of India (LIC) started a new
international joint Venture company in the name of „Indo-
Saudi Insurance Company‟ which will be the first insurance
company to Introduce Islamic Insurance.

14. Conclusion
 The preceding discussion makes it clear that Islamic banking
is not a negligible or merely temporary phenomenon.
 Islamic banks are here to stay and there are signs that they
will continue to grow and expand.
 It is especially in this sense that Islamic banks can play a
catalytic role in stimulating economic development.
 In many developing countries, of course, development banks
are supposed to perform this function.