 In this module, we will continue with our discussion on Islamic credit cards. In the previous module, we looked into an Islamic credit card in which the credit facility was generated through a process known as Tawarruq. As I mentioned in that module and before that in quite a few other modules that Tawarruq is a mode of financing which has attracted a lot of controversy in Islamic banking and finance. So a credit card which is based on Tawarruq would be frowned upon by many observers of the Islamic banking and finance industry. Hence, some people or some organizations came up with an alternative Islamic credit card which is based on Ujra. Ujra of course is an Arabic word. We call it Ujrat in Urdu. So this concept of Ujrat is above. In this model of Islamic credit card, credit facility is decided by the card provider i.e. the bank based on some information it receives from the customer in the application form. So based on the profile of the customer, especially the credit worthiness of the customer and the personal circumstances of the customer, the credit provider, credit card provider determines the credit facility. So this Tawarruq work is not done. The central to Ujra based credit card is the P, Ujrat for certain goods and services which the credit card may facilitate for the customer to receive. The benefits the credit card provider facilitates take Ujrat. Ujra based Islamic credit cards originated from the Middle East. I think it was Dubai Islamic Bank which first structured an Islamic credit card based on Ujra. However, the use of Ujra based credit cards, Islamic credit cards has spread to other countries, especially in Malaysia. In Pakistan, no Islamic Bank offers an Islamic credit card except two. It is Basel Bank which has structured an Islamic credit card based on the mechanism of Tawarruq and of course standard chartered Sadik Bank also offers an Islamic credit card. Other banks, especially Islamic banks, they have yet to come up with an Islamic credit card. What are the rules governing Ujra based Islamic credit card? Number one, credit card provider should ensure that the Ujra is imposed on the services which are Sharia compliant. They are not fictitious services. What could be those services? It could be access to a business lounge at an airport, access to a golf course. Certain discounts offered by stores and vendors to the holders of this Islamic credit card. So, these benefits, they should be Sharia compliant. It is also permissible and this is rule number two. It is also permissible for the card provider to charge different fees to different levels of cards. A simple card, a silver card, a gold card, a platinum card, can have different fees as long as these cards offer different sets of benefits and this is acceptable from Sharia viewpoint. The imposition of Ujra on the services and benefits and privileges which are not related to debt, card or deferment of debt and exchange of cash with cash at a different value is permissible. So, as such services, cash withdrawal, debt deferment and we said that this is actually prohibited interest, so all other services which do not involve exchange of debt for debt or deferment of debt and cash for cash, these services should be excluded when the credit card provider is determining the Ujra or the fee. Why? Because all these activities, card, deferment of debt and exchange of cash for cash, especially if it's higher amount of cash, then all these things are not permissible in Sharia. However, charges may be imposed to cover the actual management costs associated with these activities. So, in case of an Ujra based Islamic credit card, a credit facility is decided by the card provider based on a score card, based on the personal circumstances of the applicant and their credit worthiness and a fee is imposed to offer this credit card to the customers.