Paying zakat by means of a banknote

Question

“Malfuzat” (“Sayings”), part seven, p. 305; the journal “al-Muballigh”, 8, vol. 13, for the month of Jumada al-Ula 61 AH; saying no. 446. A certain nawab (a title of a Muslim ruling prince or nobleman) asked this question in writing: nowadays rupees are not to be had, only banknotes (notes) are available, and zakat is not paid with them; how, then, is zakat to be paid in such a situation?

Answer

A banknote is not a rupee but a receipt and a hawala (transfer of debt). The condition for paying zakat by means of a banknote is that it is not lost by the poor person, but that he spends it on obtaining property: whether he changes it into rupees or buys some other thing with it. If the banknote itself is lost by the poor person, the zakat has not been paid.

Source: Fatawa Mahmudiyya

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