📄 Abstract
This study investigates the behavioral, religious, and ethical motivations that shape the perceived need for and confidence to transition from conventional to Islamic banking among Indian consumers. Despite having one of the world’s largest Muslim populations, India lacks a formal Islamic banking system, leaving a sizable demographic either financially excluded or underserved due to religious prohibitions against interest (riba). Using a quantitative approach, a structured questionnaire was administered to 300 respondents across selected Indian states. Statistical tools such as descriptive analysis, Pearson correlation, and multiple linear regression were employed to assess key behavioral predictors. The results indicate a high perceived need for Islamic banking, driven primarily by religious commitment, ethical concerns, and discomfort with interest-based financial systems. A significant positive correlation was found between religiosity and the demand for Islamic banking. The analysis also revealed moderate to high levels of consumer confidence to transition, influenced largely by trust in Islamic finance, knowledge of its principles, and perceived institutional support. The study concludes that behavioral finance factors, particularly trust and awareness, play a critical role in shaping financial preferences and readiness. It recommends policy attention to inclusive banking reforms and awareness campaigns to address this unmet demand ethically and effectively.
🏷️ Keywords
📚 How to Cite:
Mahmood Aslam K, Dr. Shafeer PS , UNDERSTANDING THE NEED FOR AND CONFIDENCE TO CHANGE FROM CONVENTIONAL TO ISLAMIC BANKING IN INDIA: A BEHAVIOURAL PERSPECTIVE , Volume 11 , Issue 9, september 2025, EPRA International Journal of Multidisciplinary Research (IJMR) ,