Question

Discuss the differences that exist between a Ribā-based Conventional Banking Ribā- free (RF) Banking.

Discuss the differences that exist between a Ribā-based Conventional Banking Ribā- free (RF) Banking.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Major differences between Riba based Banks and Riba free Banks are-

1.Riba based banking allows interest , while interest is considered Haram (not allowed) in Riba free banking.

2. Riba based banking operates through board of directors while Riba free banking operates through Sharia board and principles of Quraan.

3. There is no concept of sharing loss in Riba based banking while, Riba free banking advocates for sharing loss.

4.In Riba based banking, Time value of Money is the basis of charging interest on capital , while in Riba free banking, Profit on exchange of goods is the basis for earning profit.

Add a comment
Know the answer?
Add Answer to:
Discuss the differences that exist between a Ribā-based Conventional Banking Ribā- free (RF) Banking.
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT