Despite the formal establishment of "Islamic banking," Iran's banking system faces widespread violations of citizens' rights due to the gap between religious principles and operational practices. Within this framework, concepts such as the prohibition of usury and uncertainty (gharar), the customer's actual participation as a partner of the bank, and the necessity of transparency and trust are presented as foundational requirements of Islamic banking; however, in practice, loan agreements containing oppressive conditions, poor timely information dissemination, and a lack of transparent access to economic decisions and information have undermined citizens' rights. From an economic perspective, the flawed implementation of the Interest-Free Banking Operations Law (1983) has caused chronic inflation, which distorts the social justice and public welfare that constitute core objectives of Islamic economics. From a banking standpoint, the unfair performance of the banking network and the concentration of financial resources in Tehran have deepened regional disparities and reduced development and employment opportunities in the provinces. In the judicial sphere, banking complexities, the proliferation of laws, and a lack of sufficient expertise in judicial proceedings hinder effective action against violations and limit the possibility of protecting the weaker party against banks. Consequently, proposed policy strategies include reforming foundational banking laws, designing a citizen oversight institution, monitoring Central Bank guidelines, establishing a depositor support fund during banking crises, and enhancing education in banking law through specialized disciplines to improve financial governance and guarantee citizens' rights.