An Analysis of Awareness & Prospects of Islamic Banking in India

Islamic banking is system of banking that operates as per the principles of Shariat or Islamic Law that prohibits the use of interest in banking transactions. The Shariat prohibits the lending and borrowing of money on interest that is considered to be Haram. As per Shariat the banking transactions can be done on the basis of profit & loss sharing rather than interest (Riba) payments. The Islamic banking system is gaining its popularity in Muslim Countries and sin some of the Non-Muslim countries have also adopted this banking system such as China & UK. Therefore this study has been undertaken to study the awareness of the people about the Islamic banking and prospects of Islamic banking In India. The study has been conducted in district Rajouri of J&K by collecting data from 100 respondents and results revealed that most of the people have basic awareness about the Islamic banking and they believe that if they get an opportunity of investing in Islamic banking window, they will surely invest their money through that window.