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Showing posts from September 21, 2013

Difference between Islamic Finance and conventional finance #islamicfinance #conventionalfinance #interest

The difference between the two banking systems also lies in terms of governance structure, Islamic banks must comply with the rules posed by the Holy Quran and meet the expectations of Muslim community by providing acceptable financing modes of Islam Islamic finance is a financial system that operates according to “Sharia” principles. Sharia, which is an Arabic term, means, “The way to the source of life” It has all the features of a conventional financial system such as capital markets, fund managers, investment firms and insurance companies. However, these systems are governed by Islamic laws. A core concept of Islam is that Allah is the owner of all wealth in the world, and humans are only the trustees of the wealth. Therefore, humans need to manage wealth according to Allah’s commands, which promote justice and prohibit certain activities. The law does not forbid Muslims from enjoying wealth, they have the right to enjoy whatever wealth they acquire and spend in sharia-compliant …

RBI allows non-bank Islamic finance firm #islamicfinance #islamicbanking #rbi #india

REUTERS - The Reserve Bank of India (RBI) has allowed a firm in Kerala to operate as a non-banking financial company (NBFC) that follows Islamic principles - a small step towards developing sharia-compliant finance in the country. An estimated 177 million Muslims in India, the largest Muslim minority population in the world, are unable to use Islamic banks because laws covering the sector require banking to be based on interest, which is forbidden in Islam. But some companies, especially in Kerala which has a large Muslim population and an overseas diaspora of workers who remit money back from the Gulf, are nevertheless trying to develop Islamic financial products outside the banking sector. Cheraman Financial Services, based in Kochi, plans to offer leasing and equity-finance products under Islamic principles. It said it had obtained approval to operate from the RBI and would follow the Islamic ban on interest; it will not take deposits from customers. "We propose to roll out t…

Gold Price history for last 86 years #gold #goldprice

Abu Bakr ibn Abi Maryam reported that he heard the Messenger of Allah say: "A time is certainly coming over mankind in which there will be nothing (left) that will be of use (or benefit) save a Dinar (i.e., a gold coin) and a Dirham (i.e., a silver coin).” [This prophecy clearly anticipates the eventual collapse of the fraudulent monetary system now functioning around the world.] (Musnad, Ahmad)