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:

 

Salam`o`Alekum and blessings to every one in the team of (islamhelpline.com)..

 

My question is that, that working in Islamic Bank is allowed? 2)if u think that now days its only islamic by the name pls can u tel me what is the Islamic way of banking coz i have got the job in islamic bank in (Murabaha)dept so wht would be the procedure of it in Islamic way for it?

pls i want asnwer as soon as possible ....

 

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Answer:

 

Can one work in an Islamic bank

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 none 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 working in Islamic Bank is allowed?

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!

 

Dear and beloved brother in Islam, it is not the concept of banking per say which is forbidden in Islam, but it is the concept and dealings of ‘riba’ which forms the very back-bone of conventional interest-based banks, which is absolutely forbidden in Islam by Allah and His Messenger (saws).

 

The Islamic Banks or Islamic Financial Institutions are all based on Shariah-compliant interest-free dealings, and it would be absolutely permissible for a believer to seek employment in an Islamic Bank, if he wishes to do so.

 

Your Question: if u think that now days its only islamic by the name pls can u tel me what is the Islamic way of banking

Most people are so used to the conventional interest-based banking system, that in their ignorance of the laws of Shariah-compliant Islamic Economics they may at times accuse the Islamic Financial Institutions of dealing in interest or ‘riba’ with just a different name. 

 

A simple example can be cited to make the concept of ‘haraam’ and ‘halaal’ clearer.    If one marries a woman and satisfies his pleasure, it is considered ‘halaal’ and is a virtue in Islam.   But if one does not marry a woman and satisfies his pleasure with her out of marriage, it is considered ‘haraam’ and a huge sin in Islam!  Both satisfy the carnal pleasures of man, but the difference between them is a one-page or a simple verbal legal contract of marriage!!   The ignorant might say ‘what is the difference’?   But you and I both know, there is a huge difference in the reward and sin between the two acts, although both can be termed similar in some qualities.   But Allah Subhanah has declared marriage ‘halaal’ and fornication and adultery ‘haraam’. 

 

Similarly, although it may seem to some who are ignorant of the laws of Islamic Economics that because the Islamic Bank charges a ‘fee’ or ‘profit’ instead of ‘interest’, there is no difference in the permissibility of the transaction! But the truth is that because of the nature of the contract made by the Islamic Bank their transaction would be interest-free, and thus halaal in the sight of Shariah and Allah Subhanah, and the interest-based transaction of a conventional bank would be considered absolutely illegal and haraam.

 

If one trusts, obeys, and follows the guidance and commands of Allah and His Messenger (saws),   one can be assured of never ever being misled;   but if one believes, obeys and follows any other guidance, other than that of Allah and His Messenger (saws), one can be assured of being led astray.  

 

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 and well wisher in Islam,

 

 

Burhan