*Assistant Professor, Ram Lal Anand (Eve.), University of Delhi, New Delhi, India
**Assistant Professor, Bharati College, University of Delhi, New Delhi, India
***Assistant Professor, Vivekananda Institute of Professional Studies, GGSIP University, India
****Student, Department of Commerce, Delhi School of Economics, University of Delhi, University of Delhi, New Delhi, India
Online published on 11 April, 2014.
Islamic banking is a value-based system that primarily aims at ensuring moral and material well-being of the individual and society as a whole. Interest-free Islamic banking is a worldwide trend with over 500 Islamic banking institutions operating all over the world. According to International Islamic finance forum, the total assets under management in Islamic banking in the world are expected to increase to $ 1 trillion by the end of 2013. This paper examines the reasons for which Islamic banking has becomea dilemma for Indian banking industry. Further, this paper also underscores how the conventional banking system is different from Islamic banking and it tries to explain the current scenario of Islamic banking in India.
Islamic banking, Sharia law, financial inclusion
