Is not the Service Charges of Islamic Bank also Interest? - Dr Zakir Nai
- last year
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In Islamic banking, service charges are not considered interest. Interest is viewed as a form of riba, which is prohibited in Islamic finance. Instead, Islamic banks charge service fees for providing services such as account maintenance, processing transactions, and other services related to banking operations.
These fees are agreed upon by both the bank and the customer at the time of entering into a contract, and they are not tied to the amount of money borrowed or deposited. Additionally, the fees charged by Islamic banks are usually lower than those charged by conventional banks for similar services.
It's important to note that Islamic banking operates on the principles of Shari'ah, which requires that all financial transactions be conducted in a transparent, ethical, and socially responsible manner
In Islamic banking, service charges are not considered interest. Interest is viewed as a form of riba, which is prohibited in Islamic finance. Instead, Islamic banks charge service fees for providing services such as account maintenance, processing transactions, and other services related to banking operations.
These fees are agreed upon by both the bank and the customer at the time of entering into a contract, and they are not tied to the amount of money borrowed or deposited. Additionally, the fees charged by Islamic banks are usually lower than those charged by conventional banks for similar services.
It's important to note that Islamic banking operates on the principles of Shari'ah, which requires that all financial transactions be conducted in a transparent, ethical, and socially responsible manner