T-Bank has launched the first federal Islamic banking in Russia. The project was announced in May 2024 at the economic forum "Russia - Islamic World: KazanForum" in Kazan.
Like a regular debit card from the bank, the Islamic debit card from T-Bank is available for application and home delivery throughout Russia, and anyone can apply for it. It also comes with its own online banking, just like a regular debit card.
However, this card receives a separate account to avoid mixing funds and spending in different sectors. It has a number of features: according to Islamic banking standards, it cannot be used to:
- pay in establishments that fall into the category of haram - in liquor stores, bars, nightclubs, tobacco shops and vape shops, pawnshops and casinos;
- conduct transactions with insurance companies, bookmakers and microfinance organizations;
- use the "overdraft" and "Piggy Bank" functions, which allow users to borrow money from the bank at interest;
- receive interest on the balance in the account;
- invest money from the account linked to the card in assets prohibited by Islamic ethics or use it to issue loans to other clients.
Some familiar functions for users of such a card have taken on a different form. For example, under the "Refer a Friend" promotion, only the inviting client can receive a monetary bonus for a friend. It is also assumed that holders of an Islamic debit card will be able to transfer funds to Muslim countries without commission within a separate established limit.
This Muslim card will not be the only one: in 2023, the Central Bank launched an experiment to create an entire Islamic banking system in the country. The experiment is officially being conducted in four regions - Tatarstan, Bashkortostan, Dagestan and the Chechen Republic with the approval of the muftiates of the regions, but Islamic banking is being made available throughout Russia.
Read more on the topic:
Calculates insurance, pays for toll roads: what the new SberBank Online auto service will do
Buy, sell, insure: T-Bank launches new services for motorists
