Guidance on Providing Interest-Free Banking Services through a Cooperative Credit Society*

We are in the process of establishing a *cooperative credit society* for our community, and we are exploring the possibility of offering services like *savings and current accounts* to our members. Additionally, we want to provide *digital banking services* such as *UPI, IMPS, NEFT, and RTGS*. However, since *charging interest* is prohibited in our faith, we are keen to understand whether it’s possible to run these services without relying on *commercial banks*, as they typically operate on an interest-based model. Could anyone kindly provide guidance on: 1. Whether a *cooperative credit society* can provide *savings and current accounts* with digital banking services (UPI, IMPS, NEFT, RTGS) while adhering to *interest-free* principles? 2. What are the *legal and regulatory avenues* to offer these services without depending on commercial banks? 3. Are there frameworks that allow a cooperative to run services like these *interest-free* and remain compliant with regulations? We would greatly appreciate insights from experienced professionals. Looking forward to hearing from you.