Dr. Mufti Syed Ziauddin Naqshbandi Mujaddidi Qadri

Shaykh Ul Fiqh, Jamia Nizamia; Founder - Director

Abul Hasanaat Islamic Research Center

Mufti Maulana Syed Zia Uddin Naqshbandi Quadri

Shaik-ul-Fiqh - Jamia Nizamia

Abul Hasanaat Islamic Research Center

Scholarly Articles

Interest from Indian bank

<meta content="text/html; charset=utf-8" http-equiv="Content-Type" /> <meta content="Word.Document" name="ProgId" /> <meta content="Microsoft Word 12" name="Generator" /> <meta content="Microsoft Word 12" name="Originator" /> <link href="file:///C:\DOCUME~1\mohi\LOCALS~1\Temp\msohtmlclip1\01\clip_filelist.xml" rel="File-List" /> <link href="file:///C:\DOCUME~1\mohi\LOCALS~1\Temp\msohtmlclip1\01\clip_themedata.thmx" rel="themeData" /> <link href="file:///C:\DOCUME~1\mohi\LOCALS~1\Temp\msohtmlclip1\01\clip_colorschememapping.xml" rel="colorSchemeMapping" /><style type="text/css">  </style> <p class="MsoNormal">Allah SWT has declared interest and Usury (Sud) as forbidden and business/selling as Halaal.<span style="">  </span>As given in Surah Baqarah:<o:p></o:p></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">That is because they say: "Trade is like usury, but Allah hath permitted trade and forbidden usury. Surah Baqarah (2:275)<o:p></o:p></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">As far as depositing money in bank is concerned, the ruling is different on whether the country is an Islamic one or non-Islamic one.<span style="">  </span>In a non-Islamic country, Improper Sale (Bai Fasida) is permissible, which means that in a non-Islamic country, in a transaction between a Muslim and a non-Muslim, if the Muslim gets extra money without any cheating of any kind, then it will not be considered as interest.<span style="">  </span>In an Islamic country, the same kind of transaction is an interest-based transaction and it is expressly forbidden.<span style="">  </span>Thus, the extra money gained from a non-Muslim financial institution in a non-Muslim country does not come under interest and can be used.<span style="">  </span>However, in an Islamic country, irrespective of whether the transaction is with a Muslim or someone else and whether the financial institution is Muslim or a non-Muslim one, such extra money is interest, which is Haraam and forbidden.<span style="">  </span>It is Wajib to give away that amount in charity.<span style="">  </span>You cannot use it for your own.<span style="">  </span>As per the Hadith recorded and mentioned by Imam Burhanuddin Farghani (May Allah shower His Mercy on him) in Hidayah, Vol.<span style="">  </span>3, Pg No: 86.<o:p></o:p></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">In an Islamic country, money obtained from such a transaction is called interest and it is forbidden.<span style="">  </span><o:p></o:p></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">As given in Hidayah, Vol. 3, Pg. No. 86.</p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">And Allah (Subhanahu Wa Ta’ala) knows best.<o:p></o:p></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">Mufti Syed Ziauddin Naqshbandi Qadri,<o:p></o:p></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">[Associate Professor, Islamic Law, Jamia Nizamia,<o:p></o:p></p> <p class="MsoNormal">Founder/Director, Abul Hasanaat Islamic Research Center]</p>