Islamic banking, also known as non-interest banking, is a banking system based on the principles of Islamic or Sharia law. Sharia lays down rules that promote fair dealings in business, and ethics based on universal principles which consider the needs that contribute to a healthy society. Since Sharia looks at money only as a measure and not as a means to an income, the act of charging the borrower interest by the lender is not allowed in Islamic banking. This form of finance started way back in the 7th century with the formation of Islam, but it was formalised in the banking and finance sector back in the 1960s.