ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles By Ather Farouqui

Islamic Banking: An Anathema to Civil Society

The debate over Islamic banking versus non-Islamic banking has gathered force in recent years with Islamists seeing a non-interest banking system as an issue to rally support for their cause. This essay points out that the Qur'anic injunction against interest refers to the practice of exploitative usury and not bank interest. There are a few practical and realistic alternatives to functioning outside the modern international banking system, which is based on interest payments. The so-called Islamic banks in India only hoodwink depositors by paying them no interest while profiting from investing their money elsewhere for interest.