Copyright © CC-BY-NC 2019, CRIBFB | IJIBFR International Journal of Islamic Banking and Finance Research Vol. 3, No. 1; 2019 ISSN 2576-4136 E-ISSN 2576-4144 Research Article Published by Centre for Research on Islamic Banking & Finance and Business, USA 13 Rastin Crowdfunding (RCF): A Financial Subsystem of Rastin Banking Bijan Bidabad B.A., M.Sc., Ph.D., Post-Doc. Professor Economics and Chief Islamic Banking Advisor Bank Melli, Iran E-mail:bijan@bidabad.com Abstract Expansion and development of social networks have provided new backgrounds for financial activities. Based on Rastin Banking Regulations, crowdfunding can be installed to apply social networks in the direction of Islamic finance. Two methods of crowdfunding are introduced in Rastin Crowd Funding. Sponsor Crowd Funding (SCF) is for the absorption of peoples’ funds for special protective goals in the form of non-profit and free payments to an entrepreneur through banks. Peer to Peer Loan (PPL) is defined for absorption and collection of peoples’ funds for extending interest-free loans to a specific project of an entrepreneur.Regarding the characteristics of crowdfunding and application of social networks, the Crowd Funding System (CFS) is used as a web-based portal for absorption and collection of money resources for crowdfunding project through social networks in Rastin Banking. Keywords: Social networks, Crowdfunding, Rastin Banking, Sponsor Crowd Funding, Peer-to-Peer Loan, Rastin Crowd Funding System, Islamic Banking 1. Introduction Crowdfunding/sourcing is a kind of financing based on collecting and participating people in profit and non-profit activities in various fields. 1 In a general classification, Crowdfunding can be considered as the participation of all people, whether acquaintances or not, in relation to implementing a task/project. An idea or a topic is shared in crowdfunding to collect and accumulate resources to implement the idea or the introduced project. The proposed project can be a charity and non-profit or a profitable activity. In Rastin Banking 2 , crowdfunding practically invites people to finance partially or totally a defined project 3 of an entrepreneur 4 through a financial grant, or loan. Regarding the mentioned characteristics, the method of work is 1 See:  Brabham, Daren C. (2008), Crowdsourcing as a Model for Problem Solving: An Introduction and Cases. Convergence: The International Journal of Research into New Media Technologies 14:1, 75-90.  Brabham, D. C. (2009). Crowdsourcing the public participation process for planning projects. Planning Theory, 8(3), 242- 262.  Zhao.Y, Zhu. Q. (2012). Evaluation on crowdsourcing research: current status and future direction. Springer science business media. 2 In Rastin PLS banking, bank is a unit, which allocates resources from depositors to those who look for financing (entrepreneur) and according to specific contracts; the obtained profit or loss is divided between depositor and entrepreneur. By receiving commission (Jol), bank provides capital management services for depositors, and invests their resources according to their choices and in return, provides them by Rastin Certificate. Bank has to use all his specialized potentialities to protect depositors' rights. 3 Project is a collection of economic activities with specified and concrete plan with defined cost and terms for making profit through Rastin PLS banking offered to PLS bank. 4 Entrepreneur is a real person or legal entity who proposes a project to PLS bank for financing through PLS banking system and executes the project until the end. In addition to have legal, financial, technical and performance capabilities, the entrepreneur should have the other capabilities and facilities/possibility to carry out the job.