Riba has become the pivotal element of all financial activities and in today's world, it seems unavoidable from an economy. Though some economists argue that Riba is the reward of saving but some other economic scholars, on the other hand, show clearly the adverse impact of it on economic activities including business. This paper is aimed at discussing and sharing knowledge on Riba, its impact on business and its status in Islam. The study shows that Riba acts against smooth business operation seriously as it increases price level and inflation, discourages productive works, causes unemployment, and denies justice and equity and so on. Islam is always in favor of peace and prosperity of human being and does not support any unjust or repulsive thing like Riba. So, Islam is against all forms of Riba. Allah, the Almighty has clearly and strictly prohibited the element of Riba in the ' Holy Quran'. Riba is also strongly rejected by the 'Hadith'. Islam wants to establish justice and equity between financier and entrepreneur in order to ensure smooth business operation as well as for smooth business development.
Keywords: Riba, Usury, Riba & business, Riba and Islam, Status of Riba
31-Aug-2024
