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Hundi transfer halaal or haraam

Mu' meneen Brothers and Sisters,

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:

Assalam Dear Brother Burhan.


One of my friends is doing the business of Hundi, if you know about it, he transfers money of different poeple from Saudi Arabia to India, without any transaction through Bank.


Please shed some light on this matter, is this halaah or haram???.

May Allah give you more strength to guide us all.


Assalam alaikum.


(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)




Hundi transfer halaal or haraam

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.


‘Hundi’ or the transfer of money from one currency to another without the interaction of a bank is not a matter of Shariah, or haraam and halaal; but rather it is a thing which pertains to the laws of the country where one resides. If one lives in a country where it is not illegal to freely exchange, send and receive foreign currency, there is absolutely no harm in dong so. But if one lives in a country where it is illegal to freely exchange, send or receive foreign currency except through the channels allowed by their government, then it would not behove a believer to break the laws of the country which do not conflict with the laws of Allah Subhanah.


In principle, the transfer or exchange of money from one currency to another is absolutely legal in Islam; whether done through an institution or through an individual.


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,





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