Islamic banking: a present demand in Indian market

Islamic banking is a term which is widely used in Indian market due to its non-presence in India and its successful operations in other countries. Islamic banking basically works upon rules and regulations of shariah law which considers giving and taking riba as a sinful act. India's population constitutes around 15% of Muslims. So there is a need to study the potential for Islamic Banking in Indian banks. It is found that almost 70% of people are aware about the countries having Islamic Banking. The objective of the study was to check awareness about Islamic banking among selected customers of the banks, comparing the preference of Muslim and Non-Muslim people for Islamic banking & identifying the scope of success of Islamic banking in India. People are of the view that if Islamic banking is implemented in India it would be successful due to no interest and no collateral requirement & can be considered as an alternative to conventional banking. It would attract investment from other countries also and would uplift lower section of society.