MUSLIMS must ensure two key conditions are met when exchanging money for new banknotes ahead of Aidilfitri, namely equal value and immediate handover.
Penang Mufti Associate Professor Datuk Dr Mohd Sukki Othman said failure to fulfil either condition could lead to riba al-fadl, which refers to an excess in the exchange of ribawi items of the same type.
He said Muslims should understand these principles so that the tradition of exchanging money for duit raya could be carried out in line with syariah requirements and fairness in financial dealings.
“Exchanging money for new banknotes for duit raya purposes is permissible in Islam. However, the exchange must be carried out at equal value to avoid elements of usury.
“Charging a fee for exchanging money is also allowed if the payment is made separately as a service charge and not as part of the currency exchange.
“On the other hand, profiting by reducing the value of the exchanged money or selling new banknotes at a price higher than their value is not allowed as it involves elements of usury prohibited under Islamic law,” he told Sinar on Thursday.
Previously, the issue of charges imposed for services exchanging money into new banknotes ahead of Aidilfitri had become widely debated on social media.
The discussion emerged after some individuals were alleged to be offering services to exchange money into new banknotes while imposing additional charges on customers to manage the process.
Elaborating further, Sukki said one common situation involved individuals offering services to exchange money for new banknotes while imposing certain charges.
“If the charge is taken by deducting a portion of the exchanged money, for example if someone gives RM100 but only receives RM93 after a RM7 charge is deducted, then it is not permissible.
“From a fiqh perspective, this situation actually involves an exchange of money with unequal value, where RM100 is exchanged for RM93.
“Therefore, it does not meet the condition of equal value in currency exchange and may fall under the category of riba al-fadl, which is prohibited in Islamic law,” he said.
Sukki said charging a fee for the service of exchanging money was permissible if the payment was made separately from the currency exchange transaction.
“For example, an individual may use their own money to exchange for new banknotes at the bank, and later offer acquaintances the option to exchange their money for those new banknotes while charging a certain service fee.
“If RM100 is exchanged for RM100 in new banknotes, while the service charge is paid separately, then the transaction can also be considered permissible.
“This is because the payment is not profit from the currency exchange itself, but rather a fee for the effort and time spent obtaining the new banknotes,” he added.