In universal system of economics, there is no God involvement but in the Islamic system there is a role of God in the economic system. In banking and finance, the scholars of Islamic economics fundamentally believe there are no interest rates. The modern financial system completely based on profitable with interest rates. According to Islamic principles, the main aim of banking and financial institutions to provide welfare of the society without use of interest rates. This paper deals with understanding the concept of interest rates in Islam and explores the ideas from many Islamic economists on Islamic banking and financial system..