IslamicFinance.de

India's first Islamic banking service began on Friday in Maharashtra’s Solapur district. Subhash Deshmukh, a BJP MLA from Solapur and state cooperation minister has launched Sharia-compliant Islamic banking. The BJP leader said that the bank has 9 branches, including 8 in Solapur and 1 in Pune, and all of them would get a separate counter for Islamic interest-free deposits and loans. Deshmukh added that other financial institutions and banks in Maharashtra should also follow and adopt this model. Interest-free deposits will be accepted from Muslims and non-Muslims at zero rates of interest to ensure their financial inclusion.

In #India Maharashtra state minister Subhash Deshmukh has launched Sharia-compliant Islamic banking. Interest-free deposits will be accepted from both Muslims and non-Muslims and distributed to the needy at zero rates of interest to ensure their financial inclusion. So far, the Lokmangal Cooperative Bank has distributed Rs 2.50 lakh to poor Muslims and the minister will now call on other banks to follow suit and adopt this model. Deshmukh said that depositors, however, will not be able to withdraw their deposits prematurely as the money will be lent out.