• Prof. Farook Ahmed Shaikh

A Bank is an institution for the safekeeping of money received from the general public, or on behalf of, its customers. Interest being the gearwheel of the recent banking, is strictly banned in Islam and that’s why there can be no banking system in Islam based on Interest. Interest though apparently a productive proposition for commercial banks, several researchers believe that Interest is the main reason for Bank breakdown and Systemic Crisis. The bank failures in the U.S. during the 1980s recharged interest in equity-based offered and the disconnection of the payment of deposit from the selection activities of banks. The proposals made were prominently similar to the Islamic systems now being put into practice, at least on the deposit part. The Islamic system goes more, requiring that loans made by banks should also be equity-based. Islamic Banking has the same principal as conventional banking except that it operates in accordance with the governing rules of Shariah. This research structured with a aim to summarize in brief the theoretical structure of Islamic Banking. This research paper also bowl light on the Islamic laws and major principles regarding various mechanism and operations of Islamic Banking.

Islamic Banking, Development of Islamic banking, functions, Banking without interest, etc.

"A STUDY ON “ISLAMIC BANKING”", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.7, Issue 6, page no.1754-1758, June-2020, Available :http://www.jetir.org/papers/JETIR2006255.pdf

"A STUDY ON “ISLAMIC BANKING”", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.7, Issue 6, page no. pp1754-1758, June-2020, Available at : http://www.jetir.org/papers/JETIR2006255.pdf