Islamic Banking A Solution to Poverty Alleviation in India

Abstract

newline It is universally acknowledged that Poverty is like punishment for a crime you have newlinenot committed. In a developed country, poverty is something to be ashamed of. In an newlineunderdeveloped country, wealth is something to be ashamed of. An imbalance newlinebetween rich and poor is the oldest and most fatal disease of all countries. While newlinepoverty is an important problem faced by all the societies, the efforts and actions have newlinenot yet reached its goal. However, it draws more attention from most government and newlinedevelopment-oriented organizations to alleviate it in an effective and comprehensive newlinemanner. The motive of this research is to demonstrate the potential of Islamic newlineBanking as an alternative tool for poverty alleviation. In Islamic perspective, poverty newlineis seen not only from the material aspect but also the moral/spiritual, therefore, any newlinepoverty alleviation strategy must reflect on both aspects. It could be argued that while newlineconventional approach on poverty left the importance of committing to newlinemoral/spiritual, Islamic approach has more attention on that aspect. The Islamic newlinebanking sector, which has a unique feature compared to the conventional counterpart, newlineoffers a potential solution to alleviate poverty. The principle behind the Islamic newlinebanking system is the application of Islamic values to promote social justice for all newlineand to achieve economic development with development of human skills as a focus. newlinehuman capability as centre of attention. Therefore, the content of moral and value newlineaspect, emphasizing the human side and responsibility of communities, is probably newlinemore effective and comprehensive in alleviating poverty. newlineKeywords: Islamic banking, microfinance, alternative tool, newlinealleviation.