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As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

Dear brother Burhan!

Assalam Alaikum Wa Rahmatullah-e-Wabarakatuh,

First of all, All Praises are for Allah Subhanah, who guided us to the right path through the Holy Quran and the Sunnah of his Prophet (S.A.W). Next, I must pay great regards to u for the noble task of guiding people in the light of Holy Quran and Sunnah, that u are beautifully carrying on...May Allah Bless you and reward you the best for your efforts, and May Allah Almighty guide us to the right way, and May Allah Almighty help us understand and follow the Glorious book of Holy Quran and Sunnah of his Prophet (S.A.W).

Dear brother! I have a query regarding THE PEOPLE WHO WORK IN BANKS, AND FOR THOSE WHO KEEP ACCOUNTS (BOTH THE PROFIT AND LOSS SHARING AND CURRENT), IN THE BANKS.
1.) Brother! Please do help me understand the issue in the light of Holy Quran and Sunnah, that if a person is working in bank as an officer, and is not directly involved in interest handling, then whether his income is right (Halaal) or wrong (Haraam).
2.) Moreover, are we not appreciating the interest banking by keeping our accounts with such banks; and being clients of these banks, are we not directly involved in interest (Riba)?
3.) The government of my country has borrowed heavy loans from the IMF and World Bank, and pays them interests over these loans. When I am a citizen of this country as well as a government officer, I am loyal to this goverment, so, in this case, is my income also unacceptable (Haraam) as I am drawing this income directly from government?

Please solve these confusions in the light of the Glorious book of Quran, and Sunnah of the Prophet (S.A.W). Allah Almighty will reward you for this on the day of judgment (Insha Allah

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Answer:

Working in Banks, Loans and Interest

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol, no person,  no grave, no prophet,  no imam,  no dai,  nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad(saws) is His slave-servant and the seal of His Messengers.

Allah says in the Holy Quran Chapter 2 Surah Baqarah verse 274-276:But those who devour ‘riba’ become like the one whom Shaitaan has bewitched and maddened by his touch.   They have been condemned to this condition because they say,  “Trade is just like ‘riba”,  whereas Allah has made trade halaal and ‘riba’ haraam.   Henceforth,  if one abstains from taking ‘riba’ after receiving this admonition from his Lord,  no legal action shall be taken against him regarding the ‘riba’ he had devoured before:  his case shall ultimately go to Allah.   But if one repeats the same crime even after this,  he shall go to Hell,  where he shall abide for ever!   Allah deprives ‘riba’ of all blessing and develops charity,  and Allah does not like an ungrateful,  sinful person.

Allah says further in the Holy Quran Chapter 2 Surah Baqarah verse 278:O Believers!,  fear Allah and give up that ‘riba’ which is still due to you,  if you are true believers.   But if you do not do so,  then you are warned of the declaration of war against you by Allah and His Messenger!

Allah says in the Holy Quran Chapter 4 Surah Nisa verse 161:That they took ‘riba’,  although they were forbidden.  And that they devoured men’s substance wrongfully.   We have prepared for those among them who reject faith a grievous punishment (of Hell Fire)!

Q-1:  Brother! Please do help me understand the issue in the light of Holy Quran and Sunnah, that if a person is working in bank as an officer, and is not directly involved in interest handling, then whether his income is right (Halaal) or wrong (Haraam).
Al-Tirmidhi Hadith 2829        Narrated by Ali ibn AbuTalib

Ali heard Allah's Messenger (saws) invoke the curse of Allah on those who took usury, those who paid it, those who recorded it, and those who refused to give sadaqah.

When Allah and His Messenger (saws) have declared something forbidden,  then to derive any income from such an establishment would also be forbidden.    Thus,  if one is seeking employment,  he should fear Allah,  abstain from seeking work in a conventional bank.    But if one is already working in a conventional bank,  it would be prudent for him to seek repentance of Allah,  and search immediately for another place to employ his talents;  and when he finds an appropriate job,  resign from the present bank job.    And if one does this move purely for the sake of Allah Subhanah,  it is expected that the Bounteous Lord will enrich him from His Infinite resources and give him a huge reward for his efforts  to obey the commands of Allah and His Messenger (saws).

Q-2: Moreover, are we not appreciating the interest banking by keeping our accounts with such banks; and being clients of these banks, are we not directly involved in interest (Riba)?
Sunan of Abu-Dawood Hadith 3325  Narrated by Abu Hurayrah

The Prophet (saws) said: “A time is certainly coming to mankind when only the receiver of usury will remain, and if he does not receive it, some of its vapour will reach him.”

Unfortunately,  we live in those times today.   The Prophet (saws) said that a time will come,  when even if one tries his utmost to stay away from ‘riba’,  the whole society and surroundings will be so much engrossed in ‘riba’,  that some of its vapour or dust will reach this pious person.

There are several reputed Islamic banks and institutions in the world today who are engaged in doing transactions which are approved by Shariah.   A believer,  who truly wants to stay away from dealing in Riba,  may use the services of any of these Islamic banks;  and Allah Subhanah will reward him for his intentions to stay pure of the evil of ‘riba’.

Q-3: The government of my country has borrowed heavy loans from the IMF and World Bank, and pays them interests over these loans. When I am a citizen of this country as well as a government officer, I am loyal to this goverment, so, in this case, is my income also unacceptable (Haraam) as I am drawing this income directly from government?
Sahih Al-Bukhari Hadith 1.1  Narrated by Umar bin Al Khattab

I heard the Messenger of Allah (saws) saying, "The reward of deeds depends upon the intentions, and every person will get the reward according to what he has intended."

If one has voted for such a government to power who indulges in ‘riba’, or one is satisfied with his heart at his governments indulgence in ‘riba’; then indeed he will share a part of the sin of the people who lead such a government.  But if one’s heart is dis-satisfied with a government who disobeys the clear commands of their Lord, and strives and votes for a government to lead their country who are obedient to the commands of the All-Mighty Lord, he will be rewarded by Allah Subhanah for his intentions and his deeds.

If one is working for a government who indulges in ‘riba’; but his own job and duties are of a halaal nature and have nothing to do with the government’s decision to indulge in ‘riba’; then his earnings will be deemed legal and absolutely halaal in the sight of Shariah. 

One should realize the difference between working as an officer in a bank and working as an officer in the government.  The banks core and only business is dealing in ‘riba’ and therefore haraam, while the governments core duty is to govern the country, and not the indulgence in ‘riba’!  

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me.  Allah Alone Knows Best and He is the Only Source of Strength.

Your Brother in Islam,

Burhan