This refers to BPRD Circular No. 3 of 2006, read with BPRD Circular No 38 of 1997 and relevant instructions issued from time to time, whereby all branches of scheduled commercial banks including Islamic banks are required to collect utility bills from their customers. The aforementioned instructions to facilitate the payment of utility bills are in line with the sou-moto order No. 4 of 2006 issued by the honorable Supreme Court. However, it has been observed that some Islamic Banking Institutions (IBIs) refuse to accept payment of bills after the due date as the late payment includes a penalty which in their opinion is Riba and thus cannot be collected by them.
2. The matter was discussed with the Shariah Advisors of all IBIs at the Shariah Advisors’ Forum as well as the SBP Shariah Board. The Shariah Scholars opined that keeping in view the larger public interest and convenience, the IBIs can collect /accept utility bills after the due date with ‘Karahiat’(کراہیت) (displeasure).
3. IBIs are therefore advised to strictly comply with SBP’s prevalent instructions on collection of utility bills within and after the due date at their branches.
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