Quran is the manual for every human on this planet and Sunnah is the practice of each and every word in Quran. The followers of true Islam or Deen follow both Quran and Sunnah to achieve the pleasures and rewards here and life hereafter.
The biggest reward for any human can be his or her God whom he or she worships is pleased and this is exactly what one can do if follows the teachings mentioned in Quran. From marriage to education, from lap to grave every topic and subject is covered in the Holy Book Quran. So, the only need is to study and implement as well as learn the teachings of real Islam by following the Sunnah of Holy Prophet.
It is our perception and thoughts by the help of which we perceive things. We just stick to what we hear and what we see, rather than coming to a conclusion after a thorough research. That is a dilemma that needs to be overcome sooner or later if we want to live in a peaceful society that wants to progress.
The quest to find the truth should always be there and the thirst to find out the hidden facts should never be settled with anything. This quest is like an ignition that makes the body and soul going and ultimately it leads to the cognition of truth i-e knowing the truthful information. This cognitive framework related to the discovery of the truth can indeed be called as Islam. Truth always makes your life sound and so does Islam, which has nothing, but truth.
Islam is a complete code of conduct and has all the golden principles of living a happy and peaceful life. Exploring the principles and applying them to the daily life is the main issue. Islam provides us with the guidelines relating to every aspect of life like law, economics, banking and the list goes on and on. In short, Islam has the guidance for us in every walk of life, and it is up to us that how we respond to that.
Certainly, many of the European and Asian countries that have stepped on the road of development, have shaped their model according to the ideals of Islam and because of that, they have touched the heights of success. Following the principles of Islam, one can be rest assured that he is on the right track, and as the teachings of Islam have no hidden entity involved in it, anyone can look into the things to believe himself.
Banking is a sector on which the economy of a country depends. No country can achieve glory without having a sound banking system. Islam has given us all the guidelines to follow in every aspect of life. It is the case in banking. Islam has put in front of us certain conditions that are to be followed while doing banking.
Islam is the set of most beautiful and balanced principals for life of any individual. According to the true Islamic faith, accumulation of wealth is not at all supported. Islam believes in keeping the funds or money in circulation and there are many golden rules that one can follow for the creation of perfect society that is free of poverty and discriminations. One of the aspects of this beautiful religion is Islamic way of investing in business and earning profit. On all the profit one earns and all of his possession including gold and silver there is 2.5% obligatory deduction called zakat. Every earning person is liable to pay zakat to the needy and poor. In this way, the foundation of healthy society is laid where everyone is happy, fed and at peace. Another beautiful aspect of Islamic thought is to invest in interest free system and lay the stone of interest free banking.
The first thing that should be kept in mind is the involvement and use of interest in banking. In Islamic banking, it is totally forbidden and the banking is done according to the principles laid down by Islam. All the products and also the lending and borrowing activity is free of interest in Islamic banking. Other concepts were evolved to ease the customers, which include the concept of partnership in which a person gets entitled to the property as a legal partner rather than earning interest on that. This is useful for both the lender and the borrower and the cycle continues in a precise way.
Before the introduction of Islamic banking, many Muslims were quite reluctant to use the banking system for doing investment as it involves the phenomenon of interest. So to cater and handle the needs of the Muslims Islamic banking was introduced, which has now become popular not only among the Muslims but also among non-Muslims as well. The reason for this is that it works on the golden principles of equity and fair play, which inspires everyone regardless of the cast and creed.
Various forms of partnerships have been launched under the scheme of Islamic banking, which includes “Mufawada” and “Mudaraba”. Mudaraba is the form of partnership, which provides the person with limited entitlement of the asset. Therefore, this type of partnership in Islamic banking is sometimes called as the partnership of limited liability.