An Analysis on the Shariah and Operational of Ar-Rahnu: Post-announcement of BNM Rahn Policy Document


  • Siti Aishah Kasmon School of Muamalat & Management, Kolej Pengajian Islam Johor (MARSAH)
  • Nor Raihan Abas School of Muamalat & Management, Kolej Pengajian Islam Johor (MARSAH)


Ar-Rahnu, BNM Policy Document on Rahn


Many Scholars dispute on the Shariah issues arising from ar-rahnu application. On 18th July 2018, Bank Negara Malaysia had issued Policy Document on Rahn which comes into effect on 1st August 2019 except for paragraph 33 on submission requirement which takes effect immediately upon issuance of the policy document. This is a qualitative research using content analysis which aims to study the Shariah and operational of ar-rahnu in Malaysia. The data will be collected by using secondary data. The PDS and FAQs documents of selected IFIs regarding the application of ar-rahnu will be compared with BNM Policy Document on Rahn. The result shows that there are no issues related to ar-rahnu definition provided by selected IFIs, contracting parties, and offer and acceptance. The issues are raised on the subject matter and expenses in ar-rahnu where the IFIs which accept only gold as their subject matter are debatable among scholars. While, safekeeping fee as charged by IFIs are debatable to be deemed as not comply with Shariah. Finally, combination of ar-rahnu with qard, wadiah, and ujrah applied by IFIs does not fulfil the Shariah requirements in Rahn PD.