The impact of interest based banking on Socio-Economic Enviroment and Its solution through Islamic Finance Concept
International Journal of Scientific and Research Publications, Volume 3, Issue 11, November 2013
ISSN 2250-3153
1
The Impact of Interest Based Banking on SocioEconomic Environment and Its Solution through Islamic
Finance Concepts
Mohd Saleem*, Matloob Ullah Khan**, Dr. Sadaf Siraj**
*VAG Management Services, DDE Sikkim Manipal University, New Delhi, India
**Department of Management, Jamia Hamdard, New Delhi, India
Abstract- The main objectives of this paper are to trace the emergence and importance of interest based banking and it impact on socio-economic environment. The impact of interest based banking system was focused and analyzed with best efforts and also tries to define the working mechanism of Interest based system. How interest and banking system affects the society and how it propelled the society to go to hazardous situation? How do the lives of the people get affected by this system due to which so many social evils such as depression, anxiety and even suicide are growing rapidly among the borrowers? This paper also suggests the solutions of interest based banking system on the basis of Islamic finance concept. The authors of this paper also tried to touch some other parameters such as- tax implication of interest and focused on relationship between lenders and borrower. All these descriptive study provide better inside view of interest based banking system
Descriptive and Qualitative Research Methodologies are used in this paper on the basis of readings of many research papers, journals, newspaper, online material provided by websites and some personal experience.
While reading this paper, one will easily understand the interest based banking and it mechanism with its impact on society and economy and also reached to its solution with reference of
Islamic finance.
Index Terms- Banking, Interest, Islamic Finance, Regulatory
System and Tax;
I. INTRODUCTION
A
s it is well known that in current scenarios most
ISSN 2250-3153
1
The Impact of Interest Based Banking on SocioEconomic Environment and Its Solution through Islamic
Finance Concepts
Mohd Saleem*, Matloob Ullah Khan**, Dr. Sadaf Siraj**
*VAG Management Services, DDE Sikkim Manipal University, New Delhi, India
**Department of Management, Jamia Hamdard, New Delhi, India
Abstract- The main objectives of this paper are to trace the emergence and importance of interest based banking and it impact on socio-economic environment. The impact of interest based banking system was focused and analyzed with best efforts and also tries to define the working mechanism of Interest based system. How interest and banking system affects the society and how it propelled the society to go to hazardous situation? How do the lives of the people get affected by this system due to which so many social evils such as depression, anxiety and even suicide are growing rapidly among the borrowers? This paper also suggests the solutions of interest based banking system on the basis of Islamic finance concept. The authors of this paper also tried to touch some other parameters such as- tax implication of interest and focused on relationship between lenders and borrower. All these descriptive study provide better inside view of interest based banking system
Descriptive and Qualitative Research Methodologies are used in this paper on the basis of readings of many research papers, journals, newspaper, online material provided by websites and some personal experience.
While reading this paper, one will easily understand the interest based banking and it mechanism with its impact on society and economy and also reached to its solution with reference of
Islamic finance.
Index Terms- Banking, Interest, Islamic Finance, Regulatory
System and Tax;
I. INTRODUCTION
A
s it is well known that in current scenarios most
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