عربي
Home


Resolutions of Iftaa' Board


Resolutions of Iftaa' Board

Resolution No.(53): “ Ruling on Awards Offered by the Islamic Bank in Accordance with a Particular Mechanism“

Date Added : 02-11-2015

 

Resolution No.(53): "Ruling on Awards Offered by the Islamic Bank in Accordance with a Particular Mechanism“

Date: 8/8/1422 AH corresponding to 24/10/2001 AD

 

The Board recieved the following question:

What is the ruling when the Islamic Bank offers incentive awards to clients, who have investment accounts, in accordance with a particular mechanism (volume of the account, duration, added sums, and stability of the account)? How can we define the relation between the above clients and the Islamic Bank in light of these awards: a contract or an independent initiative on the part of the bank? If it is a contract, is it binding or not?

Answer: All success is due to Allah.

The Board of Iftaa` is of the view that it is permissible for the executive board of the Islamic Bank to distribute cash or in-kind incentive awards on these clients, and to cover their expenses in Hajj (pilgrimage) or Umrah (minor pilgrimage) or the like, if it is entitled to do so, provided that these awards are covered from the bank`s own earnings.

Moreover, it is impermissible for the bank to cover these awards from the total of the investment profits because this entails giving a portion from the share of the owners of these accounts as a sort of contribution, and this is forbidden in Sharia because the Mudarib (bank) isn`t allowed to give from the money of the Mudarabah (co-partnership), except with the permission of the owners (clients who have investment accounts). If they allow that, then it is permissible for the bank to cover these awards from its overall profit. In this case, offering these awards is considered a donation/grant on the part of the bank, and becomes a binding promise if it had made an announcement about that earlier. In addition, it can`t be considered a condition in the Mudarabah contract between the bank and the owners of the investment accounts because some of them may receive awards; whereas, others may not.

In this case, the board of directors enjoys the authority to lay down the legal terms and regulations pertaining to giving these awards (volume of the account, duration, added sums, and withdrawals), and to determine the type of the investment account (savings, deferred etc.) eligible for that, whether to all clients or to some of them.

Moreover, it isn`t permissible for the bank to distribute these awards on the owners of credit accounts (current accounts) for there is a suspicion of Riba (usury) similar to the ruling on loans because every loan that leads to a benefit is unlawful.

Based on the aforementioned, it is obvious that the relation between the Islamic Bank and the investors in light of these awards isn`t contractual, rather, it is an individual initiative undertaken by the free will of the Bank`s Administration. And Allah Knows Best.

Iftaa` Board
Chairman of the Iftaa` Board, Chief Justice, Izz Al-Deen Al-Tamimi
            Dr. Mohammad Abu Yahia
           Dr. Abdulsalam Al-Abbadi
    Dr. Yousef Gheezaan
Dr. Wasif Al-Bakhri
   Sheikh Saeid Hijjawi
        Sheikh Na`eim Mojahid

Decision Number [ Previous | Next ]


Summarized Fatawaa

Is it permissible for the guardian to give Sadaqa (voluntary charity) from the money of the orphans?

It is impermissible for the guardian to donate from the money of the orphans because he is entrusted with the safekeeping of that money, and is prohibited from donating it.

Is it permissible for the children of a deceased father to settle his debt from the Zakah (obligatory charity) money due on them?

It is impermissible to use the Zakah of one`s money for settling the debts of the deceased. However, children should settle the debts of their deceased parents out of filial piety. And Allah Knows Best.

What is the ruling on entering the toilet with something containing the remembrance of Allah?

It is disliked to bring into the toilet anything containing a reminder of Allah, such as the Quran or a sacred name (like the name of Allah, Muhammad, etc.). If one does that, etiquette dictates that he conceal it so it is not visible while entering the toilet, either by cupping his hands over it, putting it in his pocket, or inside his shirt if it is a necklace or ring. And Allah  the Almighty knows best.

What is the ruling on omitting the prostration of recitation?

Praise be to Allah, and peace and blessings be upon our Master, the Messenger of Allah.
 
The prostration of recitation (Sajdat al-Tilawah) is a Sunnah for both the reader and the listener. There is no sin in omitting it, though doing so results in missing a great reward. Muslim narrated from Abu Hurairah (may Allah be pleased with him) that the Prophet ﷺ said: 'When the son of Adam recites a verse of prostration and prostrates, Shaytan withdraws weeping, saying: "Woe to him! (and in the narration of Abu Kuraib: "Woe to me!") The son of Adam was commanded to prostrate and he prostrated, so Paradise is his; and I was commanded to prostrate and I refused, so the Fire is mine."'
 
Sheikh al-Islam Imam al-Nawawi (may Allah have mercy on him) stated: 'It is recommended to prostrate immediately after reciting or hearing a verse of prostration. If one delays it but the interval is short, he may still prostrate. However, if the interval is long, the opportunity is missed.' [Rawdat al-Talibin Vol.1/P.323].
 
Furthermore, the prostration of recitation becomes obligatory (Wajib) in congregational prayer if the Imam prostrates, out of the necessity of following him. And Allah the Exalted knows best.

See More