Md. Mynul Islam :
With the invention of modern economic systems, people have been habituated to make transactions of their commodities through different currencies. In conventional economic system, money is treated as commodity. But in Islamic economic system currency is not itself a commodity, rather it is the medium of exchange. Besides, currency can be measured as well as exchanged with another goods or currencies. Money is also treated as medium of exchange of goods and/or services which we can demonstrate through practical examples of our daily transactions.
For example, some Mr. Imran bought brush and paste from a shop paying instantly. But he forgot to buy egg. So he asked grocery shopkeeper near his residence for egg in credit and at the end of the month he pays all his dues. As a trader, Mr. Imran sells rice, wheat flours and other products to the customers on mutual agreed profits.
He sent his son to school by hiring a rented car from Uber. In the way back to school, he visited a potato field where he made some advance for purchasing potatoes.
Mr. Imran started another partnership business with Mr. Hasan in equity sharing ratio 50:50. Mr. Imran will get 60% and Mr. Hasan will get 40% of profit. Any loss incurred will be borne as per equity ratio.
Mr. Shakil, the brother in law of Mr. Imran, wants to start a business and his wife is continuously persuading him to provide her brother Tk. 500,000/- as capital. So, Mr. Imran gives his brother in law the money to start the business. The condition is that he will have a fixed salary of Tk.10000/- per month and profit will be shared 50:50 ratio and the loss will be fully borne by Mr. Imran.
Now, we can depict the features of Islamic Banking products through the daily activities of Mr. Imran’s story. He bought a paste and brush from the seller by paying him a lum sum profit. This is Murabaha mode of business in Islamic Banking. He paid his price of eggs and other commodities upon deferred payment system; this is Bai-Muajjal mode of business in Islamic banking.
Mr. Imran started business with Mr. Hasan with the capital ratio of 50:50 percent, profit as per agreed ratio and loss as per equity ratio which is Musharaka mode of business.
Uber ride sharing was Izara system.
The money that Mr. Imran has given to his brother in law as capital, is Mudaraba Islamic Mode of Business. Mr. Shakil will get salary for working in the business process. Profit will be shared as per agreed ratio and the total loss if any will be borne by Mr. Imran. In Murabaha there are two parties one is Shaheb Al Mal and another is Mudarib, the entrepreneur.
Another process that was followed by Mr. Imran Ahmed was advance payment in growing potatoes, in accordance to Islamic mode of investment system which is called Bai-Salam.
It is a classic practice of human beings where all the economic activities tend to Islamic Banking System whether they believe it or not irrespective of creed, color, cast and religion, they are not beyond Islamic Banking system. Actually Islamic Banking is completely related to human needs.
In the story of Mr. Imran Ahmed, is there any attachment of unlawful way in his business or any doubt of the system in his daily life? Is there any contradiction with Islam? So Islamic Banking System is a dedicated way of welfare for the human beings.
(The writer is an Islamic Banker).
