Eye on Islamic banking and internet banking facilities
KUCHING: This week, we will delve into two growing banking trends in Malaysia: Islamic banking and internet banking.
Islamic banking follows syariah or Islamic principles. Guided by Islamic economics, it prohibits riba ( collection and payment of interest), usury, trading in financial risk and haram (unlawful) business ventures.
In Malaysia, we have the opportunity to choose between the conventional banking system and Islamic banking system.
There are banks in our country that are solely operating based on Islamic principles.
Contrary to what some people might think, Islamic banking is for all individuals regardless of their religious beliefs.
Islamic banking operates according to syariah rules on transactions, known as Fiqh alMuamalat. The basic principles of Islamic banking are the sharing of profit and loss and the prohibition of riba.
Amongst the common Islamic concepts used in Islamic banking are profit-sharing (Mudharabah), safekeeping ( Wadiah), jointventure ( Musharakah), costplus (Murabahah) and leasing (Ijarah).
Islamic banking in Malaysia is monitored by the Syariah Advisory Council (SAC) set up by BNM. In addition, Islamic banks and conventional banks that offer Islamic banking products and services are required to establish their own Syariah advisory committee or appoint consultants to advise them and ensure that their operations and activities comply with Syariah principles. Internet banking
Today, Banks in Malaysia are now encouraging their customers to do as much of their banking on the Web. Internet or online banking refers to conduct of banking transactions via a bank’s secure website.
Internet banking has advantages for you as a customer. You can bank from the comfort of your home or office, during or outside of banking hours, and from anywhere with Internet access.
All you need is a web browser and normal Internet connection. No special software or hardware is usually required.
The Internet banking allows you to:
1. Check your bank balances and statements
2. Submit applications for new accounts, credit cards and loans Place fixed deposits
3. Transfer funds between accounts (own and third party)
4. Pay bills, credit cards, loan instalments and insurance premiums or takaful contributions
5. Create, change and cancel standing orders Request for cheque books and statements Check the status of your cheques
6. Request for stop cheque payments
7. Apply for bank drafts and telegraphic transfers.
You sign up with a bank that offers the service to you with existing accounts, such as savings account, current account, credit card and loans.
There are also banks that offer special accounts designed for Internet banking for existing as well as new customers.
Make sure the features of the special accounts are suitable for you. Do not get attracted by special offers that may not be relevant or meet your needs. Shop around for the best deal. You can go to BNM’s website for a list of banks offering Internet banking.
Subscription to Internet banking services is currently free, although this may change.
Fees may also be charged for some services such as Interbank fund transfers, telegraphic transfers and requisition for new cheque books.
Check with your bank regarding their fees. Banks may offer more competitive fees for using the Internet to conduct your banking activities as compared to using other channels such as the branch counter service. Secure banking on the Internet
There are concerns about the safety of information and the security of transactions on the Internet. Those involved in the business, including banks, are continually working towards making the Internet a safe and secure channel. But the risks will always be there.
Always make a print-out for each banking transaction that you do using the Internet. This will allow you to refer to it if there is a mismatch of your balance with the statements the bank sends you.
It also serves as an easy reference for you and the bank staff if you want to trace the transaction.
Overall, Internet banking offers a safe way to conduct your banking transactions when adequate security precautions are taken.
There is always the possibility of something going wrong or of you making a mistake. If you encounter any problems, contact the customer services of your bank immediately with details of the transactions and problems encountered.
Your bank will have records of all your transactions and they will be able to assist you in this matter.
As with everything else that you do, read and understand the terms and conditions of the Internet banking service that you have signed up for, particularly in regard to unauthorised or fraudulent transactions and in case you have complaints.
It is good to meet the customer service officer to understand these fully before you decide to use Internet banking.
The Credit Counselling and Debt Management Agency (AKPK) is an agency under Bank Negara Malaysia tasked to help individuals take control of their financial situation. For assistance, please contact AKPK’s Power Infoline at 0326167766 or visit www.akpk.org.my.