After due date: Islamic banks to accept utility bills with ‘displeasure’
Islamic banking institutions to accept bills in larger public interest.
KARACHI:
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.
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.