PLS Accounts in Pakistan

By Mufti Taqi Usmani
Posted: 4 Sha'ban 1422, 21 October 2001

Q.) I have an account in Muslim Commercial Bank. It is PLS (profit and loss sharing) type but I only use the account to receive my pay. On 3rd of every month I receive the pay and at earliest possible I draw maximum cash I could draw using my ATM card. (Bare minimum cash withdrawal is RS. 100).

I had to enquire whether using PLS account this way is correct or not. Secondly is it ok to use ATM card? Please guide me in the light of Holy Qur'an and Sunnah. [Muhammad Usman Shafiq, Karachi]

A.) The PLS account at the moment is not compatible with Shariah because the amounts deposited in this account are used for interest bearing transactions and income derived there from is paid to the account holders as profit. Therefore you should keep your money in a current account and if for some reason you cannot do so the money distributed as profit must be donated to a charity. Since the profits are distributed on these accounts on daily product basis a small amount of interest may be credited to this account even in your case. Therefore, a calculation of the principal and the profit must be maintained and the whole of profits must be given to charity.