Modern Banking
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:
I agree with you when you say that
we have to use our intelligence and common sense where in Quran it is not
explained in detail. So using similar argument, don't you think banking
interest as prevelant today also should be argued in similar manner. As there
was no banking concept during that time, Quran is silent on the same . And what
ever is written in Quran regarding interest is interest taken from poor to whom
money is lent for their survival.
(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.)
Answer:
Modern Banking
In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and who-ever 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 has specifically prohibited all forms of ‘usury’ (riba) in the Holy Quran, and interest is only a part of usury. There were all sorts of interest-based transactions available even at the time of the Prophet (saws). Among those were where the money was lent on interest to the poor for their survival, to where some traders used to borrow money from rich ‘financiers’ on interest for their business and trade dealings. Allah and His Messenger (saws) declared all types of interest-based transactions ‘haraam’!
Allah and His Messenger have condemned ‘riba’ or usury in extremely strong terms, and let no scholar or economist or the modern ‘educated’ muslim tell you otherwise!
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 forever! 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's
Messenger (saws) said, "Even though usury be much, it leads in the end to
penury."
Allah's
Messenger (saws) said, "Usury has seventy parts, the least important being
that a man should marry his mother."
The
Prophet (saws) said: “If anyone intercedes for his brother and he presents a
gift to him for it, and he accepts it, he approaches a great door of the doors
of usury.”(Thus, bribery is also a part of ‘riba’)
The Prophet (saws) said, "Avoid the seven great destructive sins. “The people enquired, "O Allah's Apostle! What are they? "He said, "1. To join others in worship along with Allah, to practice sorcery, 2. to kill the life which Allah has forbidden except for a just cause, (according to Islamic law), 3. to eat up riba (usury), 4. to eat up an orphan's wealth, 5. to give back to the enemy and 6. fleeing from the battlefield at the time of fighting, and 7. to accuse chaste women, who never even think of anything touching chastity and are good believers.”
(The Prophet (saws) included ‘riba’ in one of the ‘Seven Destructive Sins’. If we read the other sins which accompany the list, one can imagine what is the magnitude of the sin of ‘riba’)
Ali
heard Allah's Messenger (saws) cursed those who took usury, those who paid it,
those who recorded it, and those who refused to give sadaqah.
The Prophet (saws) prophesied: “A time is certainly coming to mankind, when only the receiver of usury will remain, and if one 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 many Islamic scholars and good muslim economists who have developed the concept of Islamic banking, based on the principles of Shariah. It is still in its infant stage, and if Allah blesses it, it will be a good medium for the muslims in the future generations to work upon.
But in light of the clear aayahs and the traditions of the Messenger of Allah (saws), the currently available interest-based conventional banking system is absolutely 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. Allah Alone Knows Best and He is the Only Source of Strength.
Your brother and well wisher in Islam,
Burhan