To release the word from the shackles of interest based financial system and to bring it under the blissful, righteous and just umbrella of judicious Islamic system, the Academy took the responsibility of preparation a blue-print of Interest free banking or Islamic financial system. The Banking Committee constituted by the Academy, comprised of Ulama and financial experts, held phase-wise meetings and analyzed and assessed the technical and legal aspects of Islamic banking keeping present Indian legal system in view. A questionnaire was prepared which was sent to Ulamas and their responses were sought. The committee presented a detailed draft report elaborating upon the possibilities of the establishment of an Islamic Financial Institution in the context of India and to resolve prospective problems and issues. Efforts are still on in this direction and many models and outlines are under consideration.