SBI Sharia fund has been available all over India since 2014 and not ONLY in Kerala!

Claim

What’s happening @TheOfficialSBI? When did you start accepting Sharia Fund? This is happening in the Islamic stronghold of Malappuram in Kerala.

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Explanation

The image of SBI Bank from the Malappuram branch is shared on social media. This post is widely spread with a claim stating, “What happened to SBI? When did it start accepting Sharia Fund? This is happening in the Islamic stronghold of Malappuram in Kerala.” You can view similar claim posts here and here.

What’s the truth?

We started our analysis with a relevant keyword search on Google, leading us to a report from 2014. According to the Economic Times report, it disclosed the planned launch of a diversified equity fund that adheres to Shariah rules on December 1, 2014. The fund sought to draw investments from the nation’s sizable Muslim population. The article went on to add that Shariah regulations forbid investing in firms that deal with the tobacco and alcohol industries. They also prohibit the payment of interest.

We used this as a cue to perform another keyword search with ‘Details of Sharia fund’ and ‘SBI Sharia fund rules,’ which helped us find more information about the scheme and the SBI’s principles of the Sharia Equity Fund.

According to the SBI regulations, “The Shariah-compliant stocks are the stocks which adhere to Shariah principles i.e. religious beliefs and financial ratios. The stock screening is done on various parameters as follows:

Sector-Based – Business activities related to the following are excluded: Pork, Alcohol, Gambling, Financials, Pornography, Tobacco, and some others come under this category.”

Furthermore, we could not find anywhere in the scheme that this is limited to Kerala.

In summary, the data mentioned above makes it clear that the widely shared image claiming that SBI is accepting Sharia funds is not a recent initiative, as it dates back to December 2014.

Conclusion:

Therefore, we conclude that the widely circulated image purporting that SBI accepts Sharia funds only in Kerala’s Islamic stronghold of Malappuram is misleading. Since this scheme has been in place since December 2014, it is actually a national policy that applies to all of India.

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Indu Meenakshi

Indu Meenakshi is a former Microbiologist-turned-journalist, works as a Sub-Editor at YouTurn. She additionally holds Master’s in Management and English Literature. As a fact-checker, her job entails actively dispelling false information found online, exposing fake news, and raising public awareness.
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