PRACTICAL APPLICATION OF CURRENCY SALAM TRANSATION IN ISLAMIC BANKING- A CASE STUDY OF PAKISTAN

Abstract

Islamic banking with the passage of time is acquiring impetus. Many local and international banks have started to open separate Islamic banking branches and windows to cater the needs of customers who are interested in shari’ah approved products. Islamic banking system is facing a good competition from developed conventional banking system in products and services. With the passage to time the awareness of Islamic banking and its products is improving substantially. The purpose of the study is to understand the practical procedure of currency salam transaction in Islamic banks. Methodology of this paper is quantitative research. For this 60 questionnaires were distributed among bankers dealing in currency exchange transactions in Islamic Banks, out of which 52 respondents were received and used. The content and descriptive analysis techniques were employed to analyze the data. The SPSS software is used to anlayse the data collected by questionnaire. The study supports the literature and according to data almost 71% respondents of Islamic banks believe that salam transaction is practically implemented in selected Islamic banks.