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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