Hadith on Classification of Riba
razi pahlavi abdul aziz
Dear All,
As mentioned in the class, here is the explanation (in my own words)
on the classification of Riba, pls refer to page 26 (on RIba and
Gharar) of your Module.
The hadith;
"gold is to be paid for gold, raw and coined, silver and silver, raw
and coined (with equal weight), wheat by wheat by equal measure,
barley by barley with equal measure, dates by dates with equal
measure, salt with salt with equal measure; if anyone gives more or
asks more, he has dealt in usury. But there is no harm in selling gold
for silver and silver (with gold), with unequal weight, payment being
made on the spot"
Explanation:
This hadith is referring to the origin of Riba from an exchange
transactions of two types of assets (known as the Ribawi item) as per
following:-
1. Gold, Coin, Silver- referring to currencies and money
2. Wheat, barley, dates, salt- referring to commodities that are
mainly food items
The hadith clearly states that an equal amount of counter value is
required in exchange of ribawi assets in the same class be it in
currencies of commodities. For example USD 1000 in exchange of USD
1000 is allowable and not tantamount to riba, but if USD 1000 is
exchanged to USD 1100, the counter value is not equal and it is
tantamount to Riba. As for the commodity, if 1000kg of wheat is
exchanged to 1000kg of wheat is allowable but if 1000kg of wheat is
exchanged to 1100kg of wheat then there is an excess which represents
Riba. This riba is known as riba al fadl or riba by excess.
In the case of an exchange of two different asset of ribawi item, for
example USD 1000 in exchange of RM 3600 and the transaction is made on
spot basis (spot means immediately, like if we go to money changer)
than the transaction is allowable. However if we change USD 1000 to RM
3600 on deferred basis than it is tantamount to Riba. As for the
commodity ribawi item, if we change 1000kg of Wheat to 500 kg of dates
on spot basis, it is allowable and not tantamount to riba (it can also
define as barter sale) or if we change USD 300 to 900kg of wheat, its
allowable (defines as normal sale/purchase). However if we change
1000kg of wheat to 500kg of dates on deferred basis it is tantamount
to Riba. This riba is known as Riba Al Nasiah or riba by deferment.
The extension is where it is applicable from other than those things
mentioned on the hadith; (some juristic views)
a) zahiri= not recognise to extend to other commodity other than these
6 (commodities reason because they are not recognise analogy as a
source of law. ( so other than these 6 commodities zahiri ckp takbleh
guna)
b) Jumhur: subject to extension. but must same characteristics such as
foods, money and so on. they based on illah (illah = reasoning)
i)Shafie: illah for gold and silver because of cuurency weat,
barley,dates because of foodstuffs
ii) Maliki same asshafie but add illah for foodstuffs that can be stored
iii) Hambali ; First view: illah for gold and silver same genus and
can change hand by weight. same also to foodstuffs
Ok I hope this helps...
Many thanks
Razi
Wan Mahiran
From: razi pahlavi abdul aziz <rpabd...@gmail.com>
To: uitmci...@googlegroups.com
Sent: Mon, December 20, 2010 11:52:02 AM
Subject: Hadith on Classification of Riba
razi pahlavi abdul aziz
Please let me know if you need further explaination.
Thanks
RP
Nur hanisah Ahmad zaini
Subject: Re: Hadith on Classification of Riba
razi pahlavi abdul aziz
nurul hidayah
thank you Mr.Ravi. i have receive the note. |
--- On Mon, 20/12/10, razi pahlavi abdul aziz <rpabd...@gmail.com> wrote: |
|
Nur athirah Mazlan
Subject: Re: Hadith on Classification of Riba
Dont worry... InsyaAllah all is good for you..
On Mon, Dec 20, 2010 at 1:23 PM, Nur hanisah Ahmad zaini
<nhanisa...@yahoo.com> wrote:
aishah ghazali
Subject: Hadith on Classification of Riba
Wan Mahiran
Dear Sir,
I am quite confuse with case study 2. The question said to describe stakeholder in IF institution and another is their importance. Should I explain why it is important for each of the stakeholders or just explain overall why it is so important to safeguard stakeholders interest ? do u get what i mean?
Thank you.
Mahiran
Subject: Re: Hadith on Classification of Riba
razi pahlavi abdul aziz
Dear Mahiran,
Thank you for your email and it is a very good question. The case
study requires you to explain two main things as following:-
1) Who are the stakeholders for of Shariah compliance- you can briefly
explains who are they and how do they relate to Islamic banks.
2) Why it is important for Islamic banks to uphold Shariah compliance
in order to safeguard the stakeholders interest? on this one you need
to first understand what is the meaning of Shariah compliance and you
need to think hard on what would happen if an Islamic bank that claims
it is Islamic but never taken any necessary measures to uphold the
Shariah compliance matters.
For example,....
"Bank Islamic A is a new bank in Japan and offers an Islamic savings
account, however since it is very hard to find a lawyer who can draft
an Islamic savings account contract, the bank decided just to use the
conventional savings account contract which includes the interest/riba
given to the depositor.
The above scenario is a prove that the Islamic bank neglects to uphold
the Shariah compliant measure in developing its Islamic product. As
such the product is deemed non Shariah compliant. Explain the
consequences affecting the customer, bank management, regulators and
bank's shareholders......."
Hope this helps...
Many thanks
Razi
Wan Mahiran
Mazanira Hussin
From: razi pahlavi abdul aziz <rpabd...@gmail.com>
To: uitmci...@googlegroups.com
Sent: Mon, December 20, 2010 11:52:02 AM
Subject: Hadith on Classification of Riba
