عربي
Home


Resolutions of Iftaa' Board


Resolutions of Iftaa' Board

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

A man cursed Allah, is he allowed to perform prayer without making Ghusl?

All perfect praise be to Allah the Lord of the Worlds. May Allah`s peace and blessings be upon our Prophet Mohammad and upon all his family and companions.
 
Cursing Allah is an act of apostasy and one who commits it must utter the testimonies of faith, make repentance, take back wife; however, it isn`t conditioned that he makes Ghusl (Full body ritual purification) to pray. And Allah The Almighty Knows Best.

A person bought a device through a usurious bank, and receives income from it every month after paying the bank for the price. Now the person regrets it, what should he do now?

This person has fallen into what is forbidden due to dealing with usury. He must repent sincerely, and whoever repents, Allah Will Accept their repentance. As for the device, there is no need to sell it. And Allah Knows Best

My eyebrows are very thick. Is it allowed to reduce them by cutting?

All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.
 
It is allowed to reduce thick eyebrows by cutting them, however, it isn`t allowed to pluck or make very thin. And Allah The Almighty Knows Best.

A woman went for Hajj while pregnant, gave birth after leaving Arafat, and was unable to perform the Tawaf Al-Ifadah. If she cannot stay until she becomes pure from postpartum bleeding (Nifas) and she is from a distant country, what is she liable for?
 

This woman is advised to leave Mecca in a state of Ihram if the caravan departs. Once she reaches a distance where returning to Mecca is not feasible, she should consider herself in a state of being prevented (Muhsar). She may then exit Ihram, and she is required to offer a sacrificial animal (Blood) at that location. Additionally, she must perform a compensatory Hajj at the earliest possible opportunity. And Allah Almighty Knows Best.

 

 

 

See More