RHB Islamic Bank has announced that its Islamic credit and charge cards will be migrated to a new Shariah contract this year [PDF]. The change forms part of an industry-wide effort to strengthen Shariah compliance and standardise the structure used for Islamic credit card products. The migration is scheduled to take place on 18 December 2025.

Transition From Ujrah To Tawarruq-Based Structure

The key update involves replacing the existing Ujrah structure with a Commodity Murabahah arrangement conducted through Tawarruq. Tawarruq is a method used in Islamic banking where a bank buys a commodity and sells it to the customer at a marked-up price, allowing repayment over time in a Shariah-compliant way. Commodity Murabahah is the buying-and-selling process that supports this arrangement and is widely used in Islamic financing.

RHB Islamic states that the revised structure aligns with current Shariah requirements and reflects practices adopted across the Islamic banking industry.

As part of the migration, some terms used in the card’s documentation will be updated. “Actual Management Fee” will become “Effective Profit Rate/Charge”, while “Fixed Management Fee” will become “Ceiling Profit Rate/Charge”. These new terms match the Tawarruq structure and describe the contract more accurately.

What These Term Changes Mean For Consumers

Although the terminology is changing, your card usage and payment obligations will remain the same. The effective profit rate refers to the actual rate charged when a balance is outstanding, while the ceiling profit rate is the maximum rate allowed under the new structure. Both already existed under different names, so this update does not increase your costs or affect how your monthly payments are calculated.

All existing benefits, features, reward programmes, and services will continue without interruption. Cardholders will keep their current card number, and the migration will not require any action unless a customer chooses to opt out of the new structure.

What Cardholders Need To Know

RHB Islamic confirms that customers who are comfortable with the new contract do not need to take any steps. Continuing to use the card after the migration date will be treated as consent to the updated terms. The bank also reminds customers to stay alert to scams during this period and to rely only on official communication channels, as product changes may create opportunities for fraudulent messages.

Customers who choose not to migrate may opt out by terminating their Islamic credit or charge card and settling all outstanding balances before the effective date. Once a card is terminated, it can no longer be used. Those who prefer to compare alternatives can explore some of the best Islamic credit cards in Malaysia to find products that match their needs.

If a customer opts out but still has an outstanding balance at the time of migration, this will be treated as consent to proceed with the Tawarruq structure, and the new terms will automatically apply.

Industry-Wide Transition Across Islamic Banks

According to the bank, several Islamic banks in Malaysia are participating in this transition exercise. These include RHB Islamic Bank, Maybank Islamic, CIMB Islamic, AmBank Islamic, HSBC Amanah, Public Islamic Bank, and Bank Simpanan Nasional. This coordinated shift aims to ensure that Islamic credit card products remain aligned with Shariah standards across the industry.

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