Islamic banking introduced in Chechnya and Dagestan from September 1

The State Duma adopted a law on Islamic banking. He establishes that the experiment will last from September 1, 2023 to September 1, 2025 in Bashkortostan, Tatarstan, Chechnya and Dagestan.

Islamic banking is a way of conducting banking activities, which involves the observance of the religious rules of Sharia. It prohibits investing in alcohol, gambling, and certain types of meat. Financial institutions, when making transactions, will not be able to set remuneration expressed as an interest rate.
The adopted law also makes it possible to issue an Islamic mortgage using maternity capital. A citizen who has concluded a contract for the sale of real estate with a bank with a deferred payment will be able to direct the funds of the capital to pay for obligations.

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