DECISION NO: 7 Withdrawing Cash Advance with the Cards of Conventional Banks from the ATMs of Participation Banks.

DECISION OF TKBB ADVISORY BOARD

DECISION DATE : 28.02.2019
DECISION NO : 7
DECISION SUBJECT : Withdrawing Cash Advance with the Cards of Conventional Banks from the ATMs of Participation Banks.

REFERENCE

REQUEST DATE : 22.01.2019
REQUEST NO : 8
REQUEST SUBJECT : Withdrawing Cash Advance with the Cards of Conventional Banks from the ATMs of Participation Banks.
REQUESTOR : TKBB (Credit Cards-ATM Sub-Working Group)

REQUEST SUMMARY:

When all ATMs are turned into a common platform, there will be a notification statement that daily interest/profit share will be charged with the fixed fee in cash advance withdrawal transactions from bank cards. When the ATMs of participation banks are opened to such transactions of conventional banks, is the transaction considered as "mediating interest"?

DECISION:

It is against participation banking principles and standards to allow cash advance withdrawal with interest from the ATMs of participation banks with conventional bank cards.

Sharia Basis:

It is forbidden to be a party to interest-bearing transactions and also to mediate such transactions in Islamic law. Since allowing cash advance withdrawal from the ATMs of participation banks through conventional bank cards means mediating an interest-bearing transaction, it does not comply with the participation banking principles and standards.