May peace on all! Dear friends you all are requested to ponder over the problem of interest. Is this a problem of muslims only??

Secondly, suppose the entire banking system goes interest free; now, where you will keep your money? kindly rank the following options:

1- do not save at all,

2- save but keep at home,

3- save and invest,

4- save and keep in bank.

Please remember that:

* it may be dangerous to keep money at home,

* in a bank, money is safe,

* bank provides the faciities of funds transfer ( by cheque or through electonic means like debit cards etc.)

An increase in the money supply may be called monetary inflation, to distinguish it from rising prices, which may also for clarity be called 'price inflation'.[23] Economists generally agree that in the long run, inflation is caused by increases in the money supply. However, in the short and medium term, inflation is largely dependent on supply and demand pressures in the economy.[24]                                                             (SOURCE: http://en.wikipedia.org/wiki/Inflation)

Reserve ( minimum reserves each commercial bank must hold (rather than lend out) of customer deposits and notes. ) serves as a very basic tool for the bank to lend out money and to earn profit, while increasing the supply of money many many times. For example, if the reserve requirement is 10%, and a depositor deposits 100$, so the bank can convert this 100 into 1000$ ( for 10% of 1000 is 100), increasing the supply of money 10 times. This is the increase yet not in physical money; hence it adds to inflation greatly.

 CHapter 2: verses:

275. Those who eat Riba (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitan (Satan) leading him to insanity. That is because they say: "Trading is only like Riba (usury)," whereas Allah has permitted trading and forbidden Riba (usury). So whosoever receives an admonition from his Lord and stops eating Riba (usury) shall not be punished for the past; his case is for Allah (to judge); but whoever returns [to Riba (usury)], such are the dwellers of the Fire - they will abide therein.