From Tribune.com.pk: Like other basic requirements of Islam, finance or financial transactions need to comply with Islamic modes. Riba was soon after discontinued in the newly-formed Islamic society of Medina. Later, religious scholars derived a number of modes of financing to carry out financial transactions in line with Islamic Shariah.
The essence of the Islamic financial system is to prohibit Riba and make available financial products in line with Shariah. In today’s Islamic banking philosophy, even though Islamic banks are offering financial products free from Riba, the elimination of interest from society is still a dream……………………………………….Full Article: Source