Kerala CPM is all set to launch its first Sharia-compliant banking institution. The cooperative bank named ‘Halal Fayida Coop Society’ will be located at Kannur.
Minister for Local Administration K T Jaleel will inaugurate the first fund collection event on July 11.
CPM had made the announcement at a seminar conducted by Minority Cultural Coordination Committee of the party on May 25. The move aims to lure Muslim minority into the party.
Like any other Islamic institution, the society will not pay interest on deposits or charge interest on loans. It will also follow ethical financing practices and refrain from lending money for industries like gambling, pornography and liquor, which are considered harmful in Islam.
The party wants the society to function under cooperative banking laws as the state government will have the power to take decisions.
Kerala, historically known as Keralam, is an Indian state in South India on the Malabar Coast. It was formed on 1 November 1956 following the States Reorganisation Act by combining Malayalam-speaking regions.