E-4: CHALLENGES IN PUBLIC ACCEPTABILITY OF ISLAMIC BANKING

Abstract

Although most Muslims are aware that Riba is a great sin in Islamic Shariah, they still face challenges in adopting Islamic banking for their financial needs/activities/requirements. The purpose of this research article is to analyze the general trend of people's views, facing challenges and misconceptions among them regarding Islamic Banking and therefore suggest promoting Islamic banking. Even though the scope of Islamic banking is expanding on a daily basis it is not gaining the popularity it deserves. Therefore true Muslims who believe in Judgement Day always make all efforts in their life to avoid gambling and other speculative activities like Riba for themselves and their loved ones. If a Muslim does not oppose Riba to protect his entire family including himself, then his faith is meaningless. Allah issues intimate against Riba at numerous places in the holy Quran regarding Riba and explains it as a great sin. Islamic banking is a financial intermediary system that avoids paying interest on all kinds of transactions including conducting its activities in a manner that contributes to achieving the goals of the Islamic economy.