Section 39G: Charity

39G. Charity.__ (1) Where the Islamic banking institution or Islamic financial institution, in compliance with the State Bank's regulations, directives, instructions, notifications, circulars and guidelines on charity policy, determines that any portion of the income earned by an Islamic banking institution or Islamic financial institution is not in conformity with the Principles of Shariah, and where late payment by the customer is charged with a penalty, . Islamic banking institution or Islamic financial institution shall credit such amounts as notified by the State Bank. into a charity fund. The charity fund shall be maintained and utilized in such a manner as specified by the State Bank from time to time. (2) In cases where the State Bank has determined that any income earned by an Islamic banking institution or Islamic financial institution is not in conformity with the Principles of Shariah, it shall direct the institution concerned to credit such income into the charity fund as specified by the State Bank.

Effective date: 1962-06-07

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