Refah Bank - Islamic Banking

Islamic Banking

All banks in Iran must follow the banking principles and practices described in the Islamic banking law of Iran passed in 1983 by the Islamic Majlis of Iran. According to this law, banks can only engage in interest-free Islamic transactions (interest is considered as usury or riba and is forbidden by Islam and the holy book of Quran). These are commercial transactions that involve exchange of goods and services in return for a share of the assumed "profit". All such transactions are performed through Islamic contracts, such as Mozarebe, Foroush Aghsati, Joale, Salaf, and Gharzol-hassane. Details of these contracts and related practices are outlined in the Iranian Interest-Free banking law and its guidelines.

In July 2007 the bank launched a new banking service named "Gold Coins Deposit Account". Through this new service, Bank Refah's customers can deposit their gold coins into a special deposit account and in return receive points, which they can then redeem against future loans and credits. The launch of this unique deposit account, which received high publicity in the Iranian media, was marked by a presidential speech by the Iranian president Mahmoud Ahmadinejad.

The bank's CEO Peyman Nouri announced in March 2007 that his bank has been authorized by the Central Bank of Iran to issue international credit cards.