FatwaFederal TerritoriesTransactions & Finance
IRSYAD HUKUM SIRI KE-812: PENJELASAN HUKUM CASH-OUT KREDIT eMADANI
What is the ruling on charging a fee for cashing out eMADANI credit to a bank account, and is cashing out eMADANI permissible in Islam?
Short answer
Charging a service fee to convert eMADANI credit into cash or transfer it to a bank account is classed as riba, which is prohibited.
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- Federal Territories Mufti Office
- Date
- Status
- Opinion (irsyad)
- Series
- Irsyad al-Hukum (Umum)
- Topic
- Transactions & Finance
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
Charging a service fee to convert eMADANI credit into cash or transfer it to a bank account is classed as riba, which is prohibited. The fee collected is non-Shariah-compliant money that may not be used, and it must be returned to its owner, or if the owner cannot be identified, channelled to a charity body or baitulmal. Cashing out also breaches the government's terms and conditions, so the giver's consent is lost and the grant becomes invalid or void, and it is regarded as breaking the law, which Islam forbids whether or not riba is involved.
Written in our own words from the original fatwa — check the source before acting on it.
Mengenakan caj perkhidmatan bagi pertukaran eMADANI kepada bentuk tunai atau pemindahan ke bank simpanan adalah termasuk dalam perbuatan riba yang diharamkan syarak.
Read the full fatwa on the Federal Territories website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
Federal Territories Mufti Office. “IRSYAD HUKUM SIRI KE-812: PENJELASAN HUKUM CASH-OUT KREDIT eMADANI”, 8 December 2023. https://muftiwp.gov.my/ms/artikel/irsyad-hukum/umum/5800-irsyad-al-fatwa-siri-ke-812-penjelasan-hukum-cash-out-kredit-emadani. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/ruling-on-emadani-credit-cash-out-fees/