Islamic Banking in India

Islamic banking in India operates on principles consistent with Shariah law, emphasizing the prohibition of interest (riba) and the sharing of profits and losses. Instead of charging interest, banks engage in asset-backed financing, such as leasing (ijara) or partnership arrangements (mudaraba and musharaka). This system promotes ethical investing and risk-sharing, aligning financial activities with Islamic values. Although a minority in India, Islamic banking exists alongside conventional banking, offering services tailored to Muslim customers seeking compliant financial solutions, and is regulated by financial authorities to ensure transparency and stability.