Q: I currently Bank with Standard Bank. I read Mufti saheb’s fatwa regarding UCount rewards and have since abstained Alhamdulillah. I informed my parents as well, however, they received the following explanation from the Mufti that advises the bank:
“With reference to the rewards programmes of the different banks and the opinion of the Mufti: The Shari’ah Advisory Committee of Standard Bank have reviewed the uCount programme of Standard Bank and have confirmed that the concept and structure conforms to the requirements of Shari’ah. The Mufti draws his conclusion from the understanding that rewards are issued against a loan advanced which is an incorrect understanding of the programme. We agree that a deposit in a bank that is not structured in a Shari’ah manner is a loan to the bank. We however do not agree that rewards are earned based on the deposit/loan to the bank; hence the reward is interest. If the understanding of the Mufti was correct, it would mean that clients with the largest deposits would earn the highest rewards, which is not the case. Rewards are earned based on the usage of the card. The usage of the card is an independent transaction which attracts a separate fee (noted as point of sale fees in the Muftis response) and is not linked to the deposit.
The same would apply when using a credit card, rewards are earned based on the usage of the card and not the amount used There are also other factors that determine how and why rewards are earned. Point no.3 above relates to the primary consideration and not the only consideration.”
Please can Mufti saheb offer some clarification so I can explain to my parents regarding the impermissibility of UCounts.
A: We disagree with the reasoning. When the client's money is being kept in the bank as a loan to the bank, and the bank is giving these benefits to him, then any benefit that he receives from the bank in exchange of the loan which he has given the bank will be regarded as interest. Hence, it is not permissible for him to benefit from the Ucount rewards.
In one Hadith, Rasulullah (sallallahu ‘alaihi wasallam) has forbade the creditor from taking any gift or benefit from his debtor as this also constitutes interest.
Hazrat Anas (radhiyallahu ‘anhu) reports that Rasulullah (sallallahu ‘alaihi wasallam) said:
وعن أنس رضي الله عنه عن النبي صلى الله عليه وسلم قال إذا أقرض الرجل الرجل فلا يأخذ هدية
“If any person has given someone a loan, he should not accept any gift from the debtor.”
The same prohibition of taking benefit from the debtor is mentioned in another Hadith in more detail. Rasulullah (sallallahu ‘alaihi wasallam) is reported to have said:
إذا أقرض أحدكم قرضا فأهدي له أو حمله على الدابة فلا يركبه ولا يقبلها إلاأن يكون جرى بينه وبينه قبل ذلك
“If you have given a loan to some person and he (the debtor) wishes to give you a gift, or wishes to offer you a lift on his conveyance (due to being indebted to you), then do not accept his gift or his lift, except if the exchanging of gifts and giving lifts was a common practice between them prior to giving him the loan.” (Sunan ibnu Maajah #2432)
What relationship does the bank have with the person, for them to be giving him gifts? It is obvious that prior to him depositing money in the bank, he was not receiving gifts from the bank. Hence, the benefits and gifts being received from the bank are on account of the money he has given them. Therefore, in light of the prohibition mentioned in the above-mentioned two Ahaadith, it is not permissible for him to accept these benefits as they enter under the purview of interest.
Hazrat Jaabir (radhiyallahu anhu) reports that Rasulullah (sallallahu alaihi wa sallam) cursed the one who consumes (or receives) interest, pays interest, the scribe of the interest-bearing deal and the witness to such a deal.
And Allah Ta'ala (الله تعالى) knows best.
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