Synopsis Islam as a faith and as a system is relevant for all times. Amongst a number of issues dealt with by Islam, the economy is an important one, especially as in running a smooth and peaceful life, it plays a pivotal role. In general, the term 'economy' means: careful management of resources, production of goods, consumption, services, and supply of money. Economy can broadly be categorized into income, expenditure and business transactions. The basis of the economy is money, which is a means of getting things easily and rightfully. Hence, its attainment and proper management is a must. Of all the ways adopted to generate money and increase it, Islam condemns those means which may land a person in trouble in the future or which put an extra burden on him. Interest on money is such a system, which keeps getting increased with the passage of time, without any risk factor. Banking is a part of the monetary system. Islamic banking is based on an interest-free system. Like all other Islamic systems, Islamic economy is also logic based. Its spirit is the overall development and prosperity of society. As a subject, Islamic economy is quite a vast subject, which can span thousands of pages. This modest work is an enterprising initiative and will be an asset for all academics, scholars, economists and researchers.