Confirmation of the Law on Usury-Free Banking Operations

In September 1983, the Law on Usury-Free Banking Operations in Iran went through its final stages of approval. This law was passed by the Islamic Consultative Assembly on August 30, and was approved by the Guardian Council on September

According to this law, the structure of Iran's banking operations was to be based on Islamic contracts, without interest in the conventional sense of classical banking. Contracts such as partnership (Musharakah), profit-sharing (Mudarabah), lease-purchase (Ijarah), and installment sales were defined within the new framework of banking activities.

The implementation of this law was one of the most important economic and legal changes after the Revolution, and it ushered Iran's banking system into a new phase—a phase whose effects and mechanisms are still visible in the country's banking structure.