07.09.2011 - Islamic banking has emerged a viable source of financing
Islamic finance and banking is a system where all the financial activity is consistent with the principles of Sharia no lending or accepting of money on interest and no investment in haram (unlawful) activities, such as alcohol, gambling, and so on. Islamic finance works on a profit and loss sharing basis. The importance of Islamic finance has been realised by some big corporates in India. To take an example, Reliance launched Sharia-compliant portfolio management scheme and so has many others. The Reserve Bank is considering starting Islamic NBFCs (non-banking financial companies). In the mutual fund industry, too, a few but big mutual funds have launched Sharia-compliant scheme..............................................Full Article: Source
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