The head of Dagestan called the difficulties of introducing Islamic banking

The implementation of the Islamic banking mechanism is hindered by direct restrictions in the legislation of the Russian Federation. This was announced by the head of Dagestan Sergey Melikov. According to him, for the introduction of this financial instrument, it is necessary that the Russian tax and banking legislation, the civil code be adjusted and “tuned” favorably.

Last year, the State Duma adopted in the first reading a draft on the pilot implementation of Islamic banking. The experiment will last two years in Dagestan, Chechnya, Bashkiria and Tatarstan.

Islamic banking contains a number of restrictions. For example, a ban on the payment of interest (riba) and transactions with conditions of uncertainty (gharar), a ban on financing certain sectors of the economy (gambling, pork production, alcoholic beverages).

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