Differences between Conventional Bank

and Islamic Bank

CURRENT ACCOUNTS
Conventional
No particular fundamental mode is utilized in Current Record.

The Bank can utilize these assets for venture and different purposes in any case Shariah disallowance.

Liberated from cost administrations are offered to client which equivalent to premium.

Interest.

Islamic Bank
Islamic Sparing Record is an "speculation revenue driven" account administered under the guidelines of
Mudarabah with a target to give return on the venture.

The assets stored will be put resources into a speculation pool; venture/store/move in of assets will be
regarded acquisition of speculation share in the individual venture pool and
withdrawal/encashment/untimely encashment of assets are considered to be offer of speculation share
in the said speculation pool.

Mudarib, Rab-ul-Maal/Accomplices.

Profit.

Ijarah /lending

Conventional

Customary banks are occupied with loaning and obtaining cash dependent on premium.

In Customary banks, we see no such limitations. Interest is the foundation of this framework and short
selling, offer of obligations and theoretical exchanges are normal.

In Traditional Banks, a wide range of ventures are financed, just organizations regarded illicit by the rule
that everyone must follow are not upheld.

For the most part Traditional Banks don't include themselves in exchange and business as they act just
as cash loan specialists.

In Customary Bank, no such system is available.

In Customary Banks practically all the financing and store side items are advance based.

Traditional Bank regards cash as a product and loan it against premium as its remuneration.
Connection of client and bank is of Loan boss Account holder.

Remuneration is consistently Interest