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Wednesday, 24 June 2015

Use zakat money to promote modern education


MUMBAI: Carrying a small bag in one hand and an umbrella in the other, Maulana Kalimullah Qasmi roams the rain-swept streets of Mumbai. His bag holds several receipt books and a list of past and potential donors of zakat -the 2.5% share of annual savings and rental income that Muslim families give to charity. 

Qasmi is one among hundreds of zakat collectors who visit Mumbai once in a year during Ramzan. The city is home to some of the wealthiest Muslims in the country . "The community isn't doing me any favour. In fact, it's the other way around. Someone who can afford to give zakat but doesn't will be held accountable by Allah," says Qasmi, who collects the money on behalf of a madrassa in Sitamarhi, Bihar. 

One of the five pillars of Islam (other four pillars are shahdah or declaration that God is one and Muhammad is his prophet, namaz, roza or fasting in Ramzan and haj or pilgrimage to Mecca), zakat is meant to help in the economic uplifting of the community. But unorganized collection and under-utilization of the funds have hampered the cause. Nearly 60% of the total zakat money collected in India is reportedly being cornered by madrassas, including fake ones. Now there's a rising clamour within the community to reduce the contribution to Islamic seminaries. There is a demand to instead use the funds to facilitate self-employment and modern education of members.

"Zakat should be aimed at eradicating poverty , not perpetuating it.The same individuals or madrassas keep grabbing a huge chunk of zakat money year after year," says Amir Idrisi, president of Association of Muslim Professionals (AMP). At a meeting held last week on "proper utilization of zakat money", held by AMP, speakers articulated the growing feeling that a substantial portion of the total zakat money goes to madrassa which educate just a fraction of the Muslim population. "The Sachar report said only 4% of the Muslim children go to madrassas. So the community should be really worried about how to educate the 96% who attend schools," said activist Saeed Khan. 

Zakat is considered obligatory for every Muslim who is `sahebe nisaab', one whose annual saving equals not less than the value of 77 gm gold (around Rs 1.92 lakh) or 520 gm silver (Rs 18120). Most Muslims give zakat according to the value of gold, not silver. According to AMP's math, if there are around 18.75 crore Muslims in India and each family has on an average five members, there would be 3.75 crore Muslim families. Out of this, even if 20% are zakat givers, it makes for 75 lakh families. At 2.5% of the minimum eligible annual wealth, the total zakat money would amount to approximately Rs 3,600 crore. However, many experts believe this is a highly "faulty" figure. "The economic condition of Indian Muslims has improved and at least 50% of the Muslim families give zakat. There are many big businessmen who give zakat in crores. The total zakat money would be anything between Rs 45,000 crore to 50,000 crore," says economist Dr Rahmatullah who is familiar with the pattern of zakat and whose organization All India Council of Muslim Upliftment (AICMU) collects and distributes zakat money through its wing called Baitul Zakat (House of Zakat). He also said that an authentic survey of zakat needs to be done. 

Why do madrassas corner a lion's share of all this money? Islamic scholar Maulana Wahiduddin Khan says the trend can be traced to the Quranic verse (9:60) which describes the kind of people eligible to seek zakat.The verse, as translated by Maulana Khan, says: "Alms are only for the poor and the destitute, for those who collect zakat, for conciliating people's hearts, for freeing slaves, for those in debt, for spending for God's cause, and for travellers in need. It is a legal obligation enjoined by God. God is all-knowing and wise." Although the verse does not provide for zakat money to be spent on religious education, those who run madrassas seek the funds in the name of poor children attending the schools, says Khan. 

Collection of zakat and its distribution remain messy as there is no central zakat fund. Former civil servant Zafar Mahmood who established Zakat Foundation of India in 1998 says: "My foundation's main aims include organized collection and institutionalized distribution of zakat. We use zakat fund to run orphanages and educationally empower the Muslim youths." 

Many also question the trend of giving zakat only in the month of Ramzan though it can be given anytime in the year. Since it is believed that every good deed done in Ramzan brings blessings 70 times more than in any other month, most Muslims give zakat in this month. "While it is true that Ramzan brings boundless divine bounties, collection and distribution of zakat should not be confined to just one month," says senior cleric Maulana Shoeb Koti who calls those who seek zakat year after year "professional beggars." "These beggars are a bane and must be discouraged," advocates Maulana Koti. "Once you have taken zakat, you should be zakat giver not seeker." The likes of Maulana Qasmi who travel long distances to collect zakat will disagree.



(Times Of India / 24 June 2015)
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OAB’s Islamic banking arm gets nod for new products


MUSCAT: New products and services that Al Yusr, the Islamic banking arm of Oman Arab Bank (OAB), will launch have been reviewed and approved at the seventh Sharia Supervisory Board (SSB) meeting held recently.

One such key product deliberated at the Sharia board meeting was ‘Al Yusr Running Musharakah product’, a Sharia-compliant solution to cater to business requirements of regular operating and overhead expenses and to fulfil the cash-flow demand of the customers.

As part of the commitment to contribute to the growth of the Islamic banking industry in the Oman, Al Yusr always comes up with innovative and value-added products and services that are being developed, keeping in mind the unique individual and business needs of the people in the Sultanate, said the bank.

In order to ensure full compliance with Sharia, the Sharia Supervisory Board reviewed the ‘Post product implementation’ of Al Yusr products and services to ensure that they are in line with the Sharia rules and principles. The Sharia Board also reviewed and approved the Sharia audit plan for 2015.

The meeting was held at the bank’s corporate office presided over by Dr Essam Al Enezi, head of the Al Yusr Sharia Supervisory Board, and attended by Abdul Qader Shir Al Bulushi, general manager, Al Yusr and other senior officers.

Abdul Qader Shir Al Bulushi, while appreciating the Sharia Supervisory Board members, said that such regular meetings with the Sharia Board scholars who have vast knowledge of Islamic banking and finance, is pivotal in expanding the Islamic banking concepts and knowledge among the management, staff and clients.

Overall, it will create awareness among the public in the Sultanate, he added.

In the past, the Al Yusr Sharia Supervisory Board members have conducted several presentations and seminars on Islamic banking and finance in Muscat and Salalah.


(Times Of Oman / 23 June 2015)
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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
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