In Russia, there is a significant transformation. For the first time, “Islamic banking” is being launched. Starting on September 1st, a test program for this new method of banking will be implemented.
Although there are banks that cater to the approximately 25 million strong Muslim community in Russia, this is the first time the government has formally supported this type of banking.
On August 4, Vladimir Putin, the president of Russia, signed a bill to this effect. The law mentions determining whether this novel method of banking is feasible and practical.
The test program will initially start in four areas—Tatarstan, Bashkortostan, Chechnya, and Dagestan—where the majority of the population is Muslim. These locations have some prior Islamic financing expertise. The goal is to implement this new method of banking over the entire nation if the test program is successful.
A substantial shift in financial inclusion may be seen in Russia’s entry into Islamic banking. Serving various groups is important, and starting a pilot program recognizes that. If successful, this might serve Muslim communities as well as serve as a model for other countries looking to implement inclusive banking systems.