BY EDMOND ODOK – In line with the tenet of Non-interest banking principles, Jaiz Bank says there is no place for Non-Permissible Incomes (NPIs) recognition in its financial books.
However, a statement by the bank explained that in pursuance of a good cause, such incomes are kept aside and offered to charity by the nation’s pioneer non-interest bank
Jaiz Bank’s Executive Director in charge of the Southern operations, Abdulfattah Amoo, who made the clarification in Ibadan, Oyo State at the weekend, said in most cases, NPIs are normally due to penalties on default from customers and not because “we are violating Sharia principles. It is just that some customers did not live up to their obligations.”
Amoo was speaking at an engagement session with the Ulama and other stakeholders as part of the Bank’s activities to deepen the understanding of Non-interest banking and its benefits to individuals and society at large.
According to him; “It is not that the dynamics or the way we sold the product or the sequence of what we did is what went wrong. It was because the customer was negligent and didn’t play his own part in the contract.
“The law of regulations within Sharia permits Islamic banks to charge a penalty to shape the right behaviour.”
The Executive Director further explained that the Bank is not allowed to take a kobo out of such a penalty because “it is not my own income. It is Non-Permissible Income and would be given to charity.”
