Da Afghanistan Bank (Central Bank) says 36 percent of the citizens not putting their money in banks because of the interest rate as the banks paying them on their money.
Speaking at the inauguration ceremony of first Islamic Bank on Tuesday in Kabul, the Deputy Head of the central bank Wahidullah Nawshir said that with the establishment of the first Islamic bank in the country, this issue of the people will be resolved.
The commercial banks paying interest to their customers on the money they putting into their saving accounts while Islamic banking refers to a system of banking that is consistent with Islamic law and guided by Islamic economics that prohibits usury, the collection, and payment of interest.
“With the establishment of the Islamic bank, the banking transactions could be improved,” Chief Executive Abdullah Abdullah said.
Khanjan Alokozay, the deputy head of the Afghanistan Chamber of Commerce and Industries (ACCI), however, criticized the banking activity in the country, saying the banks should work for developing the industries.
This comes as currently, 15 private banks are operating in the country and mostly offering interest-based banking services to the people who adhere to Islamic rules.