After due date: Islamic banks to accept utility bills with ‘displeasure’
The State Bank of Pakistan (SBP) has announced that Islamic banking institutions can collect utility bills after due date with ‘displeasure’ which is the opinion of Shariah scholars.
According to a circular issued by SBP on Friday, the matter was discussed with Shariah advisers of all Islamic banks, who said that keeping in view the larger public interest and convenience, the Islamic banking institutions could collect utility bills after due date with Karahiat (displeasure).
SBP said that earlier it was observed that some Islamic banks were refusing to accept utility bills after due date as late payment included a penalty which in their opinion was Riba and thus could not be collected.
“Islamic banking institutions are advised to strictly comply with SBP’s prevalent instructions on collection of utility bills within and after due date at their branches,” it said. All banks from time to time are scheduled to collect utility bills from their customers, according to SBP instructions.
Published in The Express Tribune, July 9th, 2011.
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Please do read Quran o Sunnah about Riba both of you. Both of you are saying against Quran o Sunnah. In Islamic Law, both the parties must fix the price/rent for the services for a fixed period of time at the start of the contract. Any excess over this price/Rent is Riba and it is proved according to Quran o Sunnah. If we consider extra amount as Administrative cost then why this cost varies with amount of Billlike for 1000 Rs bill, extra charges are 50 and for 1200 Rs bill these echarges increased, may be to 60. No extra cost is involved since Bank's employee salary (Bank's collect Bills) remains same irrespective of amount of charges.
shriah banking becoming a talib