Starting in the Name of Allah, The Most Beneficent, The Most Merciful

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Company Name

PRESENTATION NAME

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Presented by :-Sanjeet mohanty Soumya ranjan sahoo Sudhansu Click to edit Master subtitle styleprusty Sanjeet Biswajeeta baliarsingh mohanty Badal Paul Soumya ranjan

PRESENTATION NAME

Presentation Presentation On On Islamic Islamic Banking Banking Presented by:--

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sahoo Biswajeeta baliar singh Badal paul Sovan swain

Importance of Trade in Islam

Islam has given importance to trade

immense

The nobility of this profession is obvious from the NAME it was PRESENTATION fact that Prophet Click to edit Master subtitle style chosen profession of Muhammad

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History- Background

1950 Islamic Banking in Theory w1970 Islamic Banking in Practice w1980 Islamic Financial Institutions w$300 Billion
w

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WHY ISLAMIC BANKING ??

Islam is a complete code of life that provides guidance regarding each aspect of life

The primary objective of Islamic Banking are as under:-PRESENTATION NAME Click to edit Master subtitle style 1. Equal distribution of health 2. social justice This objective can never be achieved in Interest/Riba based economic system

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What is Islamic Banking ??

Islamic banking has been defined as banking in consonance with the ethos and value system of Islam and governed, in addition to the conventional good governance and NAME PRESENTATION risk management Click to edit Master subtitle style rules, by the principles laid down by Islamic Shariah.

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DIFFERENCE BETWEEN ISLAMIC AND CONVENTIOANL BANKING

Islamic Banking

Functions Conventional and Banking operations are based on fully man Shariah made principles principles

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DIFFERENCE BETWEEN ISLAMIC AND CONVENTIOANL BANKING Investor is Promote risk

Islamic Banking

assured of presharing between Conventional determined provider of rate Banking of interest capital (investor) and user of funds (entrepreneurs)

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DIFFERENCE BETWEEN ISLAMIC AND CONVENTIOANL BANKING

Islamic Banking

Aim at maximising profit but subject to Sharia'h restrictions

Conventional Banking

Aim at maximising profit without any restrictions

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DIFFERENCE BETWEEN ISLAMIC AND CONVENTIOANL BANKING Creditor-Debtor Partners,

Islamic Banking

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relationship investor and Conventional traders, buyer or Banking money Based on seller trading. Money relationship is a medium of exchange Encourage and not asset-based a commodity, financing and its sale based on and purchase commodity is prohibited trading in

ISLAMIC BANKING PRODUCTS AND SERVICES

Currently available Islamic Banking Products and services are a) Partnership based modes of financing ) Musharaka Finance, Mudaraba Finance, b) Trade based modes of financing ) Murabaha Finance, Salam finance c) Rental based modes of financing ) Ijarah Finance, Diminishing Musharaka 4/19/12 Finance

PRINCIPLES OF ISLAMIC BANKING :

Justice, equality and solidarity Forbidden objects and creatures. Acquisition of property rights. Property (wealth) should be used in a rational but fair Way. No gain without either effort or liability.
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5 RULES OF SHARIAH IN ISLAMIC BANKING:-

The absence of interestbased transactions (riba transactions).The holy Quran prohibits anyone to charge an interest (riba) and profits needs to be generated by other means. Ban of all the financial transactions that involve 4/19/12 speculation, or speculative

5 RULES OF SHARIAH IN ISLAMIC BANKING :--The third major principle discussed in the Shariah is amanat. Fourth rule states that Muslims should pay Zakat. Fifth rule states that financing of the businesses that are 4/19/12

BASIC FRAMEFORK: prohibition of RIBA:-

Riba as interest (differences among Muslims) Interest in all forms prohibitted All interest-based transactions should be avoided Interest-based 4/19/12 transactions are seen as

MARKET SHARE OF ISLAMIC BANKING :--

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REASONS AND NEED OF ISLAMIC BANKING IN INDIA:-

banks can give inclusive growth along with control over inflation. Equity finance is extended by lower cost of credit. It provides equitable share of profit. It provides small amount of loans.

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CHALLENGES FACED BY ISLAMIC BANKING:-

Establishing appropriate risk and liquidity management techniques. Achieving consistent Shariah supervision. Managing the talent pool. Addressing legal and tax restrictions.

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CONCLUSION:-Islamic banking being a young concept can help development of poor economy. Though having few draw backs it has its own advantages to stand on.. Islamic banks are seen to involve themselves as financial intermediaries and investment oriented institutions in bringing about wellbeing of the 4/19/12 community, society and the economy

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