Islamic banking in India: An overview Shahid Mahammad1, Raj Jeevan2 1Lecturer in Commerce, The Yenepoya Institute of Arts, Science, Commerce and Management Yenepoya (Deemed to Be University) Mangalore, Karnataka, India. Email Id: shahidm@yenepoya.edu.in 2Lecturer in Commerce, The Yenepoya Institute of Arts, Science, Commerce and Management Yenepoya (Deemed to Be University) Mangalore, Karnataka, India. Email id: jeevanrajkuthar@gmail.com Online published on 10 September, 2019. Abstract Islamic banking is the fastest growing feild in financial services, and opportunity abounds. The main focus of Islamic finance is on transparency, cooperative ventures, risk sharing and ethical investing which attracts a wide range of both Muslims and non-Muslims alike. Today, Islamic banking has become one of the fastest growing segments of the international banking and capital markets. Islamic banking is found in most parts of the world. Islamic Banking has a huge market potential in India as India is the third largest Muslim populated country in the world. Islamic banking is a system of banking with Shariah laws, which is against the collection or payment of interest, commonly called ‘riba’. Islamic law also prohibits investing in business that are considered unlawful or Haraam. The basic principle of Islamic banking is based on risk sharing, which is a component of trade rather than risk-transfer which is seen in conventional banking. This paper attempts to explain the basic principles and various important products of Islamic banking. This paperfurther highlights SWOT analysis, advantages of introducing Islamic banking in India and also identifies the limitations of Islamic Banking in India. Top Keywords Financial inclusion, Islamic banking, Muslims, Riba, Shariah, SWOT analysis. Top |