What is the ruling on dealing with a bank that carried out a Tawarruq operation on a rice commodity, where the questioner authorized the bank to sell the commodity due to his inability to store it, and he is now unsure whether the bank's sale of the commodity was real, and what should he do to repent if the transaction is impermissible?
Organized tawarruq is Islamically forbidden, and a Muslim should not engage in it. As for regular tawarruq, there is no harm in it, provided certain conditions are met. One of the conditions for regular tawarruq is that the sale must occur after possession. So, if the bank sells you rice, you are not permitted to sell it or authorize the bank to sell it on your behalf until you have taken possession of it. If the transaction was completed while you believed it to be permissible, there is no sin upon you. We advise you to engage in sincere repentance, righteous deeds, and charity. The money earned from the transaction is valid and permissible, because the prohibition relates to the person's liability (dhimmah) and not to the money itself.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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