Dear Mufti Sahib,
In Pakistan Meezan bank is doing (according to them) islamic banking. They have the following fatwa on their website according to which Meezan bank is doing islamic banking and it is permissible and halal to open account with Meezan Bank and get profit. Kindly give your comments on the following fatwa and let me know if opening of an account with this bank is according to Shariah and the profit is halal:
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatuh
There are two issues to your query
1. Opening an account at Meezan Bank
2. Status of their profits earned from their account
1. The Ulama have given permissibility to open accounts at any bank for the purposes of depositing and safe keeping ones money. This permissibility also applies to conventional interest based banks. However, the interest accrued in such accounts should be disposed off without any intention of reward. Therefore, it will be permissible to open an account at Meezan Bank with the intention of deposit and safe keeping.
2. We cannot comment on the status of the profit earned from Meezan Bank as we have not studied their products and contracts. The attachment wherein Mufti Muhammad Imraan Usmani Saheb Madda Dhilluhu has given a brief structure of their deposit accounts is not sufficient material for us to base our ruling. We will only be in a position to do so after studying the exact details of their products and not a synopsis of the products. However, we have been informed that a book (Murawwaja Islamic Bankaari) has been compiled in Pakistan by Jamia Uloom Islamia – Binnori Town, wherein senior Ulama have raised objections on all the current financial products offered by the so called Shariah compliant banks in Pakistan and around the world. We also wish to caution that many banks use the names of prominent Ulama just to sell their products. You should therefore enquire the level of Shariah compliancy from independent Ulama who have no financial interest in the banks before making a final decision.
And Allah knows best
Wassalam u Alaikum
Muhammed Zakariyya Desai,
Checked and Approved by:
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In’aamiyyah