Explanation:

Both the statements are incorrect. 

Under Islamic Banking (IB) the sharia laws or Islamic laws of banking are followed. It is also referred to Sharia Banking or Interest Free Banking. Some of the laws/principles used under this kind of banking are  

• The central theme of Islamic Banking is justice, which under this can only be served by sharing of risk.
•  Usury – levying of unreasonably high interest rates in lending the money. Under IB this is prohibited. As per the Islamic principles of justice and equality, interest should not be charged on the loans given (a debt cannot be used to raise money or in simple terms money should not be used to make money)
• Interest rate is referred to as As per the Islamic laws a muslim is prohibited from accepting and giving Riba
• Haram/Halal – under this the strict guidelines will dictate the usage of money for the production of necessary/essential goods to satisfy the population (such as food, clothing, shelter etc)
•  Ghrarar/maysir – gambling in all forms is strictly prohibited
•  Zakat – is one of the five pillars in Islam. Under this the muslims must pay certain alms/donations, to purify their yearly earnings spiritually and physically
•  This money cannot be used for activities such as gambling, speculative trading, in trading of alcohol and pork etc

To fill the gap of development deficit, National Waqf Development Corporation Limited (NAWADCO), was established with an authorized capital of Rs.500 crore and paid up share capital of Rs.100 crore, under the aegis of the Ministry of Minority Affairs (MoMA) on 31st December, 2013, under the Companies Act 1956, with specific mandate to develop invaluable Waqf properties across India and to enhance the income of State Waqf Boards/ Waqf institutions for socio economic empowerment of the minorities.