• Nazir-Ul-Islam

The revolution of Iran played a primary role in converting the conventional banking in Interest-free banking after 1979 in Islamic Republic of Iran. The government in 1983 passed the law of Interest-free banking, and in 1984 banks started Islamic banking based on the 1983 interest-free law. It is difficult to accept that a bank can be run without paying or receiving interest and without the involvement of interest banks will play any role in economic development. The interest free banking system of Islamic Republic of Iran is perceived as an effective tool in achieving of the objectives of Islamic economics. This paper is an attempt to study Interest-free banking of Islamic Republic of Iran along with products offered. Furthermore, challenges and prospects will be focused. Finally, suggestions for the improvement of the performance of these banks will be mentioned.

Interest, Islam, Islamic Banking, Law.

"Interest Free Banking in Iran: Challenges and Prospects", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 4, page no.579-586, April-2018, Available :http://www.jetir.org/papers/JETIR1809881.pdf

"Interest Free Banking in Iran: Challenges and Prospects", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 4, page no. pp579-586, April-2018, Available at : http://www.jetir.org/papers/JETIR1809881.pdf