This question was submitted to CoinStudy's Shariah Board Chairman Dr. Usman Quddus, PhD in Islamic Studies & Finance for a formal ruling. His ruling is incorporated in full below.
Chairman's Ruling
Our Shariah Board Chairman Dr. Usman Quddus, PhD in Islamic Studies & Finance, reviewed this question and provided the following direct ruling preserved exactly as stated:
"کمپنی کا بغیر اطلاع پروگرام ختم کرنا کسی طرح بھی درست نہیں۔ اور صرف کہہ دینے سے جواز پیدا نہیں ہوتا۔ جب تک کمپنی اپنے تجارتی معاملات اور اسکیم و پروگرام کو واضح نہیں کرتی اس وقت تک احتیاط کرنا ضروری ہے۔"
Translation: The company terminating the program without notice is not correct in any way. And merely claiming something does not make it permissible. Until the company clearly discloses its commercial dealings and the full structure of its scheme and program, caution is necessary.
CoinStudy's Assessment Based on This Ruling
The Chairman's ruling addresses both dimensions of the question with precision and Muslim investors should read it carefully rather than selectively.
The first dimension the Chairman addresses is the unilateral termination right. Nsave's terms allow the company to terminate the rewards program at any time without notice. The Chairman states directly that this is not correct in any way. This is a significant finding: the ability to terminate without notice is not treated by the Chairman as a permissibility-enhancing feature of the program. Some might argue that non-guaranteed and cancellable payments look less like Riba because they carry no fixed contractual obligation. The Chairman's position is the opposite: unilateral termination without notice is itself problematic and does not transform an otherwise concerning structure into a permissible one.
The second dimension the Chairman addresses is the hiba argument itself. Nsave's position is that describing the payment as a promotional loyalty incentive from its own resources is sufficient to establish permissibility. The Chairman states directly that merely claiming something does not make it permissible. The label a company attaches to a payment does not determine its Shariah ruling. What determines the ruling is the economic substance of the arrangement, the transparency of the commercial structure, and the clarity of the dealings involved.
The third dimension is the disclosure requirement the Chairman establishes. Caution is necessary until the company clearly discloses its commercial dealings and the full structure of its scheme and program. This establishes a specific condition for moving beyond caution: nsave would need to provide full transparency about its commercial dealings and program structure before a permissibility assessment can be completed. As of this ruling nsave has not provided this level of disclosure and the Chairman has not issued a permissibility finding.
The Practical Guidance for Muslim Investors
CoinStudy's guidance based on the Chairman's ruling is unambiguous: Muslim investors should not participate in the nsave rewards program at this time. The Chairman has not cleared this program. He has instead identified two specific concerns, the unilateral termination structure and the insufficiency of the hiba label alone, and established a transparency disclosure condition that has not been met.
The balance-indexed daily accrual formula that calculates the reward as APR divided by 365 multiplied by daily minimum balance, structurally identical to how conventional bank deposit interest is calculated, is part of what the Chairman refers to when he requires the company to clearly disclose the full structure of its scheme and program. Until nsave provides this disclosure and a qualified Islamic scholar reviews it, caution is the correct stance.
Muslim investors who have already enrolled in the nsave rewards program should consider withdrawing from the rewards enrollment while maintaining their account if they need it for genuine commercial purposes. The account itself is a separate question from the rewards program enrollment. Questions about income already received from the program should be referred to a qualified Islamic scholar for guidance on appropriate disposal.
