The concept of Islamic banking has gained importance all over the world, including India, over the past few years. Several foreign banks operating in India like Citibank, Standard Chartered Bank, HSBC are operating interest-free windows in several West Asian countries, Europe and the US. There is also a much growing awareness about the concept among Indian banks and it is generally felt that there is a huge potential market in India for Islamic banking products.

Ever since its inception in 1978, Islamic banking has grown by leaps and bounds. Along with the increasing global Muslim population, the importance of Islamic banking and finance is also increasing. Global finance has led most western financial institutions to consider the world's 1.6 billion Muslims, a group growing at 3% every year (50% faster than the total population)—that has given birth to Islamic banking. As per an estimate of the International Monetary Fund (IMF), the number of Islamic financial institutions in the world is approximately 275 and these institutions operate in more than 75 countries.

The global Islamic finance industry has grown rapidly, especially in the last few years. The Islamic finance industry is now valued at $750 bn and it is growing by more than 20% annually. It is estimated that by the end of this decade, the total size of Islamic finance will cross over $1 tn. As per the Standard and Poor's estimate, the potential market of Islamic finance could reach $4 tn. Several banks, especially those operating in East Asian regions, are implementing Islamic banking and its products on a large scale.

India is the world's second largest Muslim-populated country after Indonesia, hence, the importance of Islamic banking is emphasized. Islamic banking is popular in rich Muslim countries and people in other developing countries have started showing interest in the same. Thus, it is interesting to note that Islamic banking is not restricted to Muslims alone, rather it is popular among non-Muslims also.

Treasury Management Magazine, Islamic Banking, Indian Banking, Foreign Banks, Standard Chartered Bank, HSBC, International Monetary Fund, IMF, Global Islamic Finance Industry, Business Transactions, Islamic Finance Industry, Islamic Trade Finance Products, Islamic Banking Products, Financial Inclusion, Conventional Banking.