Islamic banks are that do not deal :
1. with Interest which is haraam,
2. and they do not take what is called interest in return for deferring payment, even if they call it by some other name,
3. and they do not engage in transactions which are not acceptable in sharee’ah, such as selling what one does not possess,
4. or ‘aynah sales-(It is when a product is sold to a person for a deferred price (i.e. a raised price to be paid later), then that same product is bought back from him at current value less than the deferred price for which it was given to him. So when the time comes in which the deferred payment is due, he pays his creditor in full.)
5. or other kinds of transactions such as Najash Sales that are not permitted by sharee’ah.
Islamic banks are that do not deal :
1. with Interest which is haraam,
2. and they do not take what is called interest in return for deferring payment, even if they call it by some other name,
3. and they do not engage in transactions which are not acceptable in sharee’ah, such as selling what one does not possess,
4. or ‘aynah sales-(It is when a product is sold to a person for a deferred price (i.e. a raised price to be paid later), then that same product is bought back from him at current value less than the deferred price for which it was given to him. So when the time comes in which the deferred payment is due, he pays his creditor in full.)
5. or other kinds of transactions such as Najash Sales that are not permitted by sharee’ah.
Thats Islamic banking basics