A big change is happening in Russia. They are starting “Islamic banking” for the first time. This new way of banking will start with a test program that begins on September 1.
Even though there are banks that serve Russia’s large Muslim population, which is around 25 million people, this is the first time the government is officially supporting this kind of banking.
The Russian President, Vladimir Putin, signed a law on August 4 to make this happen. The law talks about checking if this new way of banking is possible and practical.
At first, the test program will begin in four regions where most of the people are Muslims: Tatarstan, Bashkortostan, Chechnya, and Dagestan. These places already have some experience with Islamic finance. If the test program works well, the plan is to use this new way of banking in the whole country.
Russia’s step into Islamic banking reflects a significant shift in financial inclusivity. Launching a pilot program acknowledges the importance of serving diverse populations. If successful, this could not only cater to Muslim communities but also set an example for other nations to consider inclusive financial systems.
