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:

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah`s Peace, Mercy and Blessings be upon all of you) May Allah accept your efforts of providing the guidance related to Islam and deen.

I am from India, presently undergoing my MBA course and would work full time after completing the course in May 06.

My question is -- IS it legal / jaiz to work in a bank or a banking industry by a Muslim/ believer.

If NO, kindly let me know the correct course of action to adopt after I complete my course.

Options available to me are...

1) Join the family managed shop which is handled as a partnership firm along with another Muslim brother. Partnership tenure will expire soon.
2) Work for other firm/company (i.e. do job).
3) Start something on own – enterprenership effort ( involves risk and investments )

Kindly reply the answer at the email address
Assalamu-alaikum

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Answer:

Working in banks

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.

Your Question: IS it legal / jaiz to work in a bank or a banking industry by a Muslim/ believer.
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)!

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.

Dear and Beloved brother in Islam, it is not that the system of banking in its essence has been declared haraam in Islam; but what Allah and His Messenger (saws) have specifically and categorically declared absolutely forbidden and haraam is the concept of ‘riba’.

There is absolutely no doubt that the conventional banking system is based on the system of ‘riba’, and even though one might not be involved himself in consuming ‘riba’, their working in such institutions would make them an accomplice in what has clearly been declared forbidden by Allah and His Messenger (saws). Thus if one works in any organization whose main source of income is from ‘riba’, then the working and earnings from such an organization would not be lawful in the Sight of Shariah.

But it would be absolutely lawful for a believer to work in an Islamic Bank or Shariah compliant financial institutions whose transactions are devoid of the evil of ‘riba’.

Your Question: If NO, kindly let me know the correct course of action
to adopt after I complete my course.
Options available to me are...
1) Join the family managed shop which is handled as a
partnership firm along with another Muslim brother.
Partnership tenure will expire soon.
2) Work for other firm/company (i.e. do job).
3) Start something on own – enterprenership
effort ( involves risk and investments )

Beloved brother, as long as you do not employ your talents and earn your livelihood from engaging in something that has been declared as ‘haraam’ or prohibited by Allah and His Messenger (saws), it would be absolutely permissible for you to do so.

All of the above three options listed by you would be deemed lawful and permissible in Shariah, provided that the family business you seek to join, or the firm you wish to work for, or a business you wish to start does not deal with something that has been specifically declared as forbidden in Islam.

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

Your Brother in Islam,

Burhan