Glossary
DSN-MUI
Indonesia's National Shariah Board, part of the Indonesian Ulema Council, which issues the fatwas Indonesian Islamic banks follow.
Dewan Syariah Nasional, Majelis Ulama Indonesia issues numbered fatwas that shape Indonesian Islamic finance. Its Fatwa No. 54/DSN-MUI/X/2006 on Syariah Card, dated 11 October 2006, is the most consumer-specific card ruling available anywhere: it names the three contracts used, sets five limits including a requirement not to encourage overspending, fixes how each fee may be charged, and requires the late charge to be recognised entirely as social funds.
Related terms
FatwaA scholar's or council's formal answer to a religious question.KafalahA guarantee: one person promising to cover another person's debt if they do not pay.IjarahA lease: renting the use of something, or someone's services, for a fee.Qard HasanA loan on which the lender gets back exactly what was lent and nothing more.Ta'widhCompensation for money the bank actually lost because you paid late.
Sources
- DSN-MUI Fatwa No. 54/DSN-MUI/X/2006; https://dsnmui.or.id/kategori/fatwa/