IslamicFinance.de

One serious complaint against the prevalent model of Islamic banking is that interest is being charged in the garb of service fee. In fact loans from Islamic banks are much costlier than those from conventional financial institutions, particularly public sector banks. Thus, one issue that must engage us is that if Islamic banking is a viable alternative for us, how can we justify the collapse of so many Islamic financial institutions in India in recent times. The real problem is that we are not prepared for a reasoned debate. Confusion continues to prevail with sharp division of opinion. The spate of failures of Islamic banks in India have caused untold suffering to small depositors. There is no alternative except to transact with conventional banks.