The banking system is not wrong. In the old (Muhammad PBUH) days, People would get loan to buy some new livestock, camels etc to earn their living. Earning interest on such loans was totally immoral and un-ethical as you are subjecting a guy already in trouble to feed himself to make him pay you back more. That is why Islam says Sood/Interest is haram because you are aggravating a person in need's condition further.
In today's commerce, you can get interest on as little and trivial of a thing as Credit card for items that are not necessities but a mere wish, like buying luxury clothes, food items, house etc etc. But the modern world is so intertwined that the original meaning of sood.interest has been lost.
If you deposit your money in a savings account, you get a specified interest on it. You are basically locking your money in one place, and as we have seen, inflation is rising rapidly in Pakistan, you actually lose the value of that money. Islam would not want that to happen. (read Islamic hadith/Quran properly before you start ranting)
Simply put, 1000rs today will not buy you the same amount of say groceries, next year.You can see this happening everywhere. Cost of Fuel, cars, clothes, meat, eggs is going up. Which means you are actually at a loss. What do Islamic banking offer? They pay you interest as well.
If you want to keep your hard earned millions of Rupees in cash in your home, feel free to do it.
But not everyone would do that. That is just plain stupid.
I do not need a lecture in economics from you.
I interpret Islam as it needs to be, not because of what the world wants me to believe.
I am entitled to my opinion, thank you and don't bother to send me a PM unless it's necessary.
