Over the past decade, the Islamic finance sector has erupted into a vibrant and growing industry. Although, it remains just a small portion of the total global financial sector, its influence is expanding. Islamic Banking refers to a system of Banking or Banking activity that is based on the principles of the Shari’ah (Islamic rulings). The principles of Shari’ah prohibit entering into any act that involves payment or acceptance of interest or riba and is considered as ‘haraam’.
Tag: INTEREST RATES
An economic slowdown in the country and successive repo rate cuts by the Reserve Bank of India (RBI) has made the headlines recently; as also the fact that this particular move has not yet been successful in boosting consumption demand. The GDP growth rate of the economy has fallen to 5% in the first quarter of FY20, the lowest in six years. This growth recession has been attributed to the recent collapse in the automobile industry, sluggish consumer demand, an increasing number of non-performing assets and failing manufacturing sector. And this decelerating growth had clearly been anticipated by the authorities as well, which is why there have been 4 interest rate cuts since February this year.
Every day the news of high interest rates causing the problems to the common man is highlighted in the news. Amidst this came the story of Negative Interest Rates. Have you ever imagined what Negative Interest Rates would look like? The following piece sheds light on the given issue.