A Revisit to the Practice of Late Payment Charges by Islamic Banks in Malaysia

Ezani Yaakub, Mohamed Azam Mohamed Adil, Asmak Husin, Mohd Dani Muhamad, Mohd Solahuddin Shahruddin, Mohammad Mahyuddin Khalid

Abstract


ABSTRACT

Islamic banking in Malaysia have been experiencing late payment and default issues because customers are not allowed to be charged with interest (riba) as opposed to the practices in the conventional banking. To mitigate these issues, the Shariah Advisory Council of Bank Negara Malaysia has enforced ta'widh and gharamah as regulatory alternatives. Practically, ta`widh and gharamah were imposed on the defaulting customers who fail to meet their obligation to pay their financing based on several conditions. Given the significance of its imposition, this paper aims to analyse the current practice in Islamic banks and examine the views of contemporary Muslim scholars on ta’widh and gharamah and its suitability as alternatives for avoidance of riba.

Keywords: Ta'widh (compensation); gharamah (penalty charges); defaulting customers; actual loss; Muslim scholars’ view; Islamic banking

ABSTRAK

Perbankan Islam di Malaysia berdepan dengan isu kelewatan bayaran balik dan kemungkiran pembayaran pinjaman kerana pelanggan tidak dibenarkan dikenakan bunga atau faedah, berbeza dengan praktis dalam perbankan konvensional. Untuk menangani isu ini, Majlis Penasihat Syariah Bank Negara Malaysia telah melaksanakan ta’widh dan gharamah sebagai alternatif perundangan. Secara praktisnya, ta’widh dan gharamah dikenakan ke atas pelanggan yang gagal memenuhi tanggungjawab mereka untuk membayar balik pinjaman berdasarkan beberapa syarat. Memandangkan signifikannya pelaksanaan tersebut, artikel ini bermatlamat menganalisis amalan semasa di perbankan Islam dan mengkaji pandangan cendikiawan Muslim kontemporari mengenai ta’widh dan gharamah serta kesesuaiannya sebagai alternatif untuk mengelakkan riba.

Kata kunci: Ta'widh (gantirugi); gharamah (caj penalti); kemungkiran pelanggan; kerugian sebenar; pandangan sarjana Islam; perbankan Islam


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