BaKhabar, August 2012, Page-5 [Muslims and their (Islamic) Banking + The Essence of Ramadan]

Muslims and their (Islamic) Banking

... By Shakeel Ashraf (shakeel.ashraf@yahoo.com)

During a friendly discussion, a person working in an Islamic Bank was asked, “How much Islamic is your Bank”? The reply was, “as much as are we Muslim”. (Conversation was in Urdu: Jitne hum musalman hain utna hamara bank Islami hai.)

A Muslim is the one who has surrendered to injunctions of Allah and one of His injunctions is to abstain from riba. Verse 279 of Sura Baqra declares war by Allah and His messenger against riba takers. After revelation of the verse money lending on riba became criminal offence in an Islamic society. [Click for source]
Today one can argue that he is not living in a society where riba can be a criminal offence. Well, there is a hadith to warn him that the sin of riba is 70 times the sin of incest with one’s mother (Ibnmaja, Baiaqi). Anyone having some moral sense can conclude, on the basis of this prophetic saying, that there is nothing more immoral than taking riba. Why such stern warnings against riba? Because Allah, the All-Knower knows that man has limitless lust to wealth. “And you love the wealth with all your hearts” (al-Fajr 89:20). Money is such a weak point for mankind that the general tendency is, to take the Divine restrictions in a light way? The warning on riba is not only to the lenders but includes all who are involved. The Apostle of Allah (pbuh) cursed the one who accepted usury, the one who paid it, the witness to it, and the one who recorded it. (Sunan Abudawud Book #22, Hadith #3327). In a capitalistic economic system, one is free to enter race of money making without any ethical limitation but Islam cuts the root of such a system.

In olden time when riba was charged by individual lenders it was easy to perceive the sufferings. In modern time the financial institution’s dual role of lending and borrowing appear quite innocent in spite of its destructive fallouts. Banks take deposits from their customers at a certain rate of interest and lend to other customers at a higher rate, the difference is their earning. Interest is the modern term for usury or riba. Lending on riba by financial institutions puts an extra liability on the economic system. To understand this let us assume that a country starts its financial system from scratch, with issue of first lot of fiat currency of amount (x) by its central bank. The bank lends the first lot of currency to the entrepreneurs on interest after taking substantial collateral and expects return of (x+y) amount. The interest amount (y) is an extra liability created by bank, which doesn’t exist in the economy. Entrepreneurs invest their borrowed money in the market and a trade battle starts as everyone tries to increase his money. The gain of one is the result of loss of another because sum total of currency has to be same as (x) issued by the bank. At the end of the term the gainers repay the principal and interest while the losers default and their collateral are forfeited by bank. The vicious cycle continues and the bank’s asset grows at the cost of borrower’s valuables. The destructive mechanism is further augmented by another devil’s tool called fractional reserve banking, which allows banks to multiply the deposited amount and create virtual money, which causes inflation in the economy.

Banking takes working class to a deceitful world of enticements. The moment a professional joins his first job, bank offers all the comfort and lavishness of life to his doorstep - a new model car, a furnished new flat in an apartment and a credit card for shopping. Who can resist the temptations of this dajjalic civilization? Only those who possess firm belief in the life hereafter.

Islamic banks claim that their transactions are free of riba. How true is their claim? Islamic banks have their paid sharia board, which issues compliance certificates to their products. Is that enough for an educated Muslim who is bound to not cross the limits set by his Lord? If it is an affair of worldly benefit he will delegate all his knowledge and wisdom to find out the pros and cons. On the other hand in religious matters any favorable edict is adopted blindly without bother to check its authenticity and applicability. Here is an example, which I have witnessed. One of my friends took a cash loan from an Islamic bank to spend in marriage and education of his children. I asked him, “under which contract did the bank give you cash loan”? He replied, “Bai-al-Salam”.

I said ‘Bai-al-Salam’ is an advance payment against future delivery of a sale, so what did you sell to the bank? I did not dare to point out the mistake on his part; I just told him that this is a gross violation by bank. He uttered an edict; “yes, the weakest point of Islamic banks is that they indulge in paper transactions (without any physical exchange of goods) to satisfy the sharia council”. What about his own weakness? I know he is well educated and there is no reason to think of his ignorance.

I borrow money from a bank and return a higher amount. What else could it be if not riba? If my dealing with an institution is in clear violation of Divine law, which I am aware of, will the ‘Islamic’ tag of the institution save me from the wrath of my Lord?
Imran Ahsan Neyazi in his book “The Prohibition of Riba Elaborated” writes on page # 129:
“If Islamic banking has to become Islamic the idea of “cash loans” has to go. In other words, the concept of credit has to be altered radically and the creation of fake money by the banks has to come to an end. Till this is done, it will be difficult to call these banks “Islamic”. The obvious question that will be raised is: Will such banking be banking? Maybe not, and in our view this is not important as long as a system that is truly Islamic is put into place. We feel that even though the banking industry in Muslim countries is dominated and remotely controlled by Western banks, it is possible to have truly Islamic banks or institutions that perform similar services.”

Many Muslims, though aware of the prohibitions in financial dealings in Islam, argue that such dealings are unavoidable in this age. Well, prohibited is permitted sometime, but when? Only when one is forced by absolute necessity (muztar), there is no intention of willful disobedience (ghair-a-baghin) and does not take more than what is absolutely indispensable (wa la aadin). Do they really meet these conditions set by their Lord (al-Baqra, 2:173) or just indulge freely without any remorse in pretence of necessity?

Related Article: Introduction to Islamic Banking and Finance

The Essence of Ramadan

---- by Abdul Sattar Shaik

There is a buzz in the air and everyone seems to be so excited about it, my mother has been attending the long flurry of calls from aunts and uncles from abroad who would be flying down soon to join the party at home. My little sister and brother are so enthralled about its coming and have already been planning what dresses would they be wearing for the big day. Dad has already paid someone to come and paint the house tomorrow and my elder sister is busy on her sewing machine giving her final touches to her new curtains.
Outside an eventful discussion is taking place among my friends; whether it will be 29 or 30 as new pamphlets are being distributed in the local mosque. The debate about when the moon will be visible on the Urdu channel has started once again. All these Indication give us the hints that Ramadaan is just a few days away.
The excitement and the zeal is quite obvious as the holy month of Ramadaan approaches with all its blessing and Rahma. As the devils get locked away and each single action of worship and deeds gets multiplied by 70 times and Nafs (Desire) being deprived of its nourishment; every Muslim become sincere, pious and focused in the worship to Allah (swta) in this great month. As the hadith enunciates; Al-Bukhaari (1761) and Muslim (1946) narrated that Abu Hurayrah (rzah) said: The Messenger of Allaah (pbuh) said: “Allaah said: ‘Every deed of the son of Adam is for him except fasting; it is for Me and I shall reward for it.’

My shaykh says that; ‘Fasting was ordained by Allah (swta) only to make us attain tawqa and It’s a training ground before one heads for the actual battlefield’. As Allah says in the quaran; O ye who believe! Fasting is prescribed to you as it was prescribed to those before you, that ye may (learn) self-restraint (2:183). So the whole essence of Ramadan to me is all about observation where at every Instance Allah is ordering us to ‘’observe’’.
• Allah orders us to observe the Hunger of the poor by commanding us to fast.
• Allah orders us to observe our wealth and teaches us the alchemy to purify it by means of Zakath (Charity).
• Allah orders us to observe our Nafs (Desire) and gives us a solution in the form of Fasting.
• Allah wants us to observe the food we consume throughout the year and shows us the way to detoxify our self.
• Allah wants us to observe his remembrance and gives us Taraweeh (Prayers) to remember him by glorify him through the reading of the Holy Quran.
• Allah wants us to observe a night of Power and Honour which is better than a thousand nights and to ask for salvation and repentance. Indeed Allah likes who ask for forgiveness.
So, what is the purpose of these observations, and why Allah wants us to observe these things? Is what essentially the holistic objective of Ramadan is. From my observations I wanted to bring into light some of the elements which we Muslims unfortunately are missing out from the lessons of Ramadan or there is a lack of understanding within us.

Many of us Muslims today MashaAllah become extremely pious in the Month of Ramadan by doing fasts, praying five times, reading Quaran, Charity and every possible deed to please Allah (swta) but as soon as Ramadan gets finished the level of their taqwa and their good acts come to an end. Similarly with people who have this perception and regard the month of Ramadan as a sin cleanser, where one gets baptised and becomes pure and holy; which invariable one gets if he with a sincere intention, and asks Allah (swta) for repentance and forgiveness. But, if the intention is to carry out the same old acts from which we asked Allah (swta) to forgive us from, then there is malice in our intentions which needs rectification. And He Allah (swta) is well acquainted with everyone’s intentions. And if one is constantly struggling and trying to improve himself, but the conditions are becoming so tough that he/she is getting drifted away then Allah is all Forgiving and Merciful.
People who are addicted to Alcohol, Cigarette, lottery and other harmful stuff and who can’t live without it’s consumption, in fact do exceptionally well in the month of Ramadan refraining from it for 30 days. Sooner Ramadan gets finished, some start after they finish the Eid prayers. Oaths and promises with Allah are broken and we come back to our same old habits and ways. When one can refrain for it for 30 days then why can’t we do it for the rest of the months? This is an answer that we all need to emblazon in our minds when we are at the break point of committing an act which displeases Allah (swta).
Ramadaan is all about perseverance, abstinence and a step becoming closer to Allah and then carrying on his good deeds and Aamaals further until he starts to become more and closer to his creator with every Ramadan that is written down in our destiny. It’s not about 30 days of Ibadah (worship), and chill out for the next 11 months. Many Ramadaans will come and go but If one doesn't observe any substantial growth in his religiosity and practice in the next 11 months after Ramadaan and shaping himself as a better Muslim, then he or she are losing an opportunity which Allah has bestowed on us all.
As life is a constant learning and developing process and the grains of sands ever so flowing away for us to mix in the ocean of eternal time, and inch by inch man is getting so closer to his final destination and abode. For those who reflect and ponder on the signs of Allah and have received his divine guidance and knowledge and are fortunate enough to have read the (Kalimah LaI laha Illallah); have a deep sense of responsibility to always elevate themselves to achieve greater heights of spirituality and character may it be through learning a small surah or doing zikr, Nawafil or charity and becoming closer to Allah.
May Allah (swta) give us the Hidayh and Taufeeq to sincerely make intentions to make us better muslims and better individuals and enable us to attain out ultimate goal Jannah.