slamic Credit Card Based on Bai` `inah Islamic banking institution proposed to offer Islamic credit card based

on the combination of bai` `inah and wadiah concepts. The proposed mechanism is as follows: i. The customer purchases an asset from the bank on deferred terms (the purchase price comprises cost plus profit); for example, RM11, 800 (RM10, 000 + RM1, 800) to be paid within one year by the customer; ii. The customer thereafter will sell back the asset to the bank on cash basis (at cost value); for example, RM10,000. The selling price of the asset is lower than the purchase price. This is the amount which will be credited into a marginal wadiah account of the bank for customers use. The above mechanism of Islamic credit card was proposed to the Council for deliberation to determine whether it is in compliance with Shariah. Resolution The Council in its 18th meeting held on 12th April 2001 / 22nd Muharram 1422 resolved that the mechanism of Islamic credit card which applies bai` `inah concept to generate funds for credit purposes by a customer who requests for the Islamic credit card is permissible.