National Shari'a Board - Indonesian Council of Ulama Fatwa No. 1 of 2000 on Giro

This fatwa defines a giro as a banking product, which enables the withdrawal of money at any time via a cheque, giro ticket, other financial order facility, or overbooking. The fatwa acknowledges that not all giros are shari'a-compliant, and that a set of guidelines are necessary for the implementation of giros in shari'a banking. Moreover, it notes that there are two types of giro:

  1. those that are not shari'a-compliant, insofar as they are based on interest calucations; and
  2. those that are shari'a-compliant insofar as they are based on Mudharabah and Wadi'ah principles.
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