UNDERSTANDING RIBA: A NEW APPROACH

Abstract

Islamic banking has grown immensely during the last decade. As more and more banks are showing up, more and more people are getting critical on the nature of Islamic banking. Within the foundations of Islamic economics, lot of confusion still persists as diverse views come up from different schools of thought. Similarly there is a need to revisit the basic concept of Riba specially
on the perspective of deferred sales transaction and to analyse in the light of shariah both in letter as well as in spirit and to come up with the precise definition of the concept, that not only satisfies all objectives of the shariah andits conditions so as to help develop financial products that could be Islamic in true spirit.