Bank Negara guideline on Islamic credit card: A new hurdle for banks?

A LETTER purportedly from Maybank is being widely shared on social media, relating to a new regulation by Bank Negara Malaysia (BNM) last year on the do’s and don’ts of using Islamic credit cards.

In the letter sent in July last year, Maybank said that those who hold its Maybank Islamic Visa Infinite Ikhwan Credit Card-i would not be able to use it on non-Shariah compliant merchant categories as follows:

  • Package stores (beer, wine and liquor)
  • Funeral services and crematories
  • Cigar stores and stands
  • Dating services
  • Government-owned lotteries (US region only)
  • Government Licensed Online Casinos (online gambling) (US region only)
  • Government Licensed Horse/Dog Racing (US Region only)
  • Betting including lottery tickets, casino gaming chips, off-track betting and wagers at race tracks
  • Government-owned lotteries (non-US region)

The letter was signed by Maybank’s Group Community Financial Services (Head of Cards Malaysia) executive vice-president Md Gharif Talib.

“Should you require to spend at the above merchant categories, you may opt for the conventional Maybank Visa Infinity Card,” he said.

However, it must be pointed out that the rule was not Maybank’s per se but was set according to the central bank’s Credit Card-i Policy Document directive which came into effect on Aug 1 last year.

Speaking to FocusM, a Maybank spokesperson said the new rule was made to comply with current official regulatory guidelines governing the use of Islamic credit cards (including the Maybank Islamic Visa Infinite Ikhwan Credit Card-i) which prohibit usage for non-Shariah compliant transactions.

“Additionally, the terms for the use of the Maybank Islamic Visa Infinite Ikhwan Credit Card-i clearly specifies that it is not to be used for non-Shariah compliant purposes,” the spokesperson said.

In a related development, the spokesperson claimed that the letter was circulated by a card holder who was upset for not being able to use the Islamic credit card to purchase alcoholic beverage at an airport, reiterating that the customer was already informed of the rule beforehand.

“We do wish to clarify, however, that such restrictions on non-Shariah compliant transactions do not apply to other conventional (i.e non-Islamic) Maybank credit cards,” the Maybank spokesperson pointed out.

“The card holder mentioned had been clearly informed of the availability of this alternative in our notification letter regarding such restrictions,” – Jan 25, 2021.

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