KANNUR: Marxism may be inherently atheistic, but that has not prevented the CPM’s district unit from undertaking a big initiative to financially empower the Muslim community. It has taken the first steps towards foraying into ‘Islamic banking’ based on Sharia law.
It is all set to launch an interest-free cooperative bank named Halal Fayidah, which means profit from a Sharia-compliant business. It is expected to woo devout Muslims hesitant to engage in banking as Islamic tenets prohibit charging or accepting interest. Minister of Local Administration K T Jaleel inaugurated the meeting convened for capital accumulation here earlier this week.
“A large section of the Muslim community in the district do not have a bank account,” DYFI district president and chief promoter of the bank M Shajar told Express. “The idea was mooted when we came to know about this.”
The idea was put forward by CPM district secretary P Jayarajan. According to Shajar, a large number of Muslims still keep their money at home.
“Many lost their savings during the demonetisation period, as they failed to produce proper documents showing the source of income. Hence, we decided to come up with a solution to address the issue,” he said.
Though Halal Fayidah will work according to Islamic principles, the bank is open to all. Being a cooperative bank, its shares can be bought by anyone. “We are open to all,” Shajar said.
As of now, the members of the board have decided to invest the capital amount in various Sharia-compliant businesses and the profit will be distributed equally among shareholders. “We are now planning to invest a sum on construction, contracting and meat processing. Once we begin to generate profits, it will be distributed. The amount will also be disbursed to people as interest-free loans,” he said.
Shajar dismissed allegations of minority appeasement and clearly stated the venture has nothing to do with politics.
“The core idea of the initiative is to bring a larger community into banking. We are not promoting identity politics nor are we aiming for electoral gains. We have received a warm response from the public, especially Muslims,” Shajar said.
The members are trying to procure an investment of `5 crore to start with. The bank is expected to be fully functional by September.
