Interest-free banking is a financial system that operates without charging or paying interest on loans and deposits. Instead, it uses profit-sharing, leasing, or other methods to generate income. This approach aligns with the principles of Islamic finance, which prohibits interest (or riba) as it is considered exploitative. In interest-free banking, banks and customers work together to invest in projects or assets. Profits are shared based on pre-agreed terms, ensuring that both parties benefit. This system aims to promote ethical financial practices and support economic development while adhering to specific moral and religious guidelines.