What is the difference b/w conventional and Islamic Banking?

Question

Meezan is one of the Premier Islamic Bank of Pakistan, which is working under the Shariah Principles, and all of the transactions are to be monitor by the Shariah Scholars. It has been observed that the business holders, and individuals make their online in the form Cash, but their transaction are to be made through cheque of the third party. And the third party get his amount in the form of cash by availing exempion of his government WHT-on cash withdrawls. Such Managers favour customers in order to increase branch deposits. I delighted to ask the SBP, and high ups that what is the different between conventional and Islamic Bank, if such transactions is being done in the Islamic Banks. And such taxes are of the Government Taxes, which are likely to be utilized in different Government Projects.

Please hlep me out teachers in correcting my grammetical mistakes and symmetry of the letter

Thanks.

AlpheccaStars · Accepted Answer

Hi mehtab_memon;
We normally do not capitalize common nouns such as bank, manager, and government.

Meezan is one of the Premier Islamic Bank of Pakistan, which is working under the Shariah Principles (move the previous clause to immediately follow its antecedent) , and all of the transactions are to be monitor by the Shariah Scholars. It has been observed that the business holders (owners? investors?), and individuals make their online in the form Cash, but their transaction are to be made through cheque of the third party. And the third party get his amount in the form of cash by availing exempion of his government WHT-on cash withdrawls. Such Managers favour (? missing determiner) customers in order to increase branch deposits. I delighted to ask the SBP, and high ups ~~that~~ what is the different between conventional and Islamic Bank, if such transactions is being done in the Islamic Banks. And such taxes are ~~of the~~ Government Taxes, which are likely to be utilized in different Government Projects.

Mehtab_memon · Answer

Sir,

I didn't understand please guide and assist me because I have to submit some where else.

AlpheccaStars · Answer

Meezan Bank, which is working under the Shariah principles, is one of the premier Islamic banks of Pakistan. All of its transactions are ~~to be~~ monitored by ~~the~~ Shariah scholars. It has been observed that the business ~~holders~~ owners and individuals make their on-line transactions in the form of cash, but their transactions are ~~to be~~ made through cheques of a ~~the~~ third party. And the third party gets his remittance ~~amount~~ in the form of cash by availing their exemption of the ~~his~~ government's WHT (?withholding) -on cash withdrawals. The (Islamic bank?) ~~Such~~ managers favour certain customers in order to increase the branch deposits. I was delighted to ask the SBP and higher-ups ~~that~~ what the difference is ~~the different~~ between a conventional and an Islamic bank, if such transactions are is being done in the Islamic Banks. And (I asked if??) such taxes are ~~of the~~ government taxes, and ~~which are~~ likely to be utilized in different government projects.
-----------------------------------------------------------

I did not understand exactly what you were saying about the relationship between taxes and bank transactions. All taxes are imposed by governments.

I don't understand how on-line transactions can be cash - cash transactions usually involves physical exchange of paper money, which is kind of difficult over the Internet.

So you might think of how to write this more clearly.

Regards,
A-

s

Mehtab_memon · Answer

I going to get you understand in the following way:

You and I both are the customers of Islamic Bank. I deposit Chq of Rs. 1 lac for withdrawl of cash payment and the same way you deposit Cash for transferring your funds. WHT ~~on Cash Withdrawl charge 0.03% it means~~ on 1 lac the tax would be deducted of Rs. 300 PKR. In this transaction I get 1 Lac from Cashier Against my CHQ and your cash is to be transffer through my cheque, where the WHT can't apply on transfer transactions. Whereas, the dealing of the PRIZE BOND also to be made in Islamic Bank. Such transactions are prohibited in Islamic Bank. I hope you understand now. Please help me out my paragraph I have to submit some where .

Your kind and immediate response highly appreciated.

AlpheccaStars · Answer

I think I understand.

Suppose you are a customer at Islamic Bank and I am a customer at the same bank.

Suppose I have to pay you 300 for some reason. I can pay you by going to the bank and withdrawing cash from my bank account, and then give you the cash money. But I will have to pay 0.03% cash withdrawal charge. The bank keeps this money.

If I ask the bank to transfer 300 from my account directly to your account, I will not have to pay 0.03%.
If I write a bank cheque for 300 and write your name as "Payee", I will not have to pay the 0.03%.

Do I give the cheque to the bank, or do I give it to you?
In Europe, I would give the cheque to the bank, and the bank would put 300 in your account. In the US, I give the check to you. You take it to the bank, and the bank gives you 300 cash or puts 300 in your account.

Is that right?

Do Islamic banks prohibit the redemption of Prize Bonds?
Do Islamic banks prohibit cash withdrawal fees?

Mehtab_memon · Answer

Now, You are at the right path.

What is the difference b/w conventional and Islamic Banking?

Top answer

Get the Weekly English Kit 📬

Related Questions