Hassam Patoli

RIBA, AL-GAIB & IMPORTANCE OF ISLAMIC BANKING

Riba:

Riba means Interest. Riba is forbidden in Islamic economic jurisprudence (fiqh) and considered as a major sin. Simply, unjust gains in trade or business, generally through exploitation.

There are two types of riba discussed by Islamic jurists:

An increase in capital without any services provided and speculation (Maisir), which is prohibited by the Qur'an, and commodity exchanges in unequal quantities, also prohibited in the Qur'an.

Al-Gaib:

In Islamic context, unseen and unknown, in reference to Allah and the forces that shape the world. The Qur'an states that man (mankind) is unable to see Allah and his attributes. Belief in al-Ghaib is considered an important Muslim characteristic, as it allows for prayer and faith.

Importance of Banking in Islam:

Islamic banking provides services to its customers free from interest, and the giving and taking of interest have prohibited in all transaction. Islam bans Muslims from taking or giving interest (the Arabic term for which is Riba), and this prohibition makes an Islamic banking system differ fundamentally from a conventional banking system.

Islamic Banking Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Sharia) principles and guided by Islamic economics. Islamic law prohibits the collection and payment of interest, also commonly called Riba in Islamic discourse.

Modern banking, based on interest and biased in favors of the capitalists and rich and well-to-do, is rejected as un-Islamic because our country try to build a banking systems with the basic and being foundation by Islam. Islam as al-Deen is not just a religion but also a set of beliefs, thoughts and aspects of life that creates a balanced equilibrium between worldly (material) and spiritual elements Without an Islamic foundation the country will not get the blessing from the god in the world and the hereafter.

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