Bankers Adda: Why IBPS Changed pattern of IBPS PO and IBPS Clerk...

Bankers Adda: Why IBPS Changed pattern of IBPS PO and IBPS Clerk...: Dear readers, most of you are aware that recently, IBPS has made change in recruitment process of  Probationary Officers Clerical cadres, wh...

Islamic Banking.........

Last couple of years we frequently heard about new concept in banking industries i.e.Islamic Banking which was started in Kerala state.Hence i m going to elaborate this concept as per my knowledge.                                                                                                                                  Islamic Banking can be defined as,banking activity that is consistent with principles of Sharia and its practicle application for development of Islamic activity.Which is totally based on Islamic faith and within limits of Islamic law.                                                                                                            Principle of Islamic Bank-        
 * No intreast paid to depositor nor charged from borrower.
 * No support to ZULMI economic activity.
 * No finance to activity involving speculation.
 * Not financing for production of goods and services which               violates Islamic values.
 * Basic principle of Islamic bank=Risk sharing,Profit sharing.
 

                                 1st Islamic bank estd. in late 1950s in rural area of Pakistan,but 1st Modern Commercial Islamic  Bank  is Dubai Islamic Bank1975.

                                 In this Islamic Bank system instead of lending to buyer for purchase item bank might buy item itself from seller and Bank resell it to buyer to earn profit ,allowing buyer to pay in installments ,there are no penenalties for delay payment.