Are banking transactions permissible or forbidden?
Banking transactions are not judged as permissible or impermissible in their entirety; some are permissible and some are impermissible, depending on whether or not they adhere to regulations. What is free from usury (riba), excessive uncertainty (), ambiguity (jahalah), and gambling () is permissible, and what includes Sharia prohibitions is impermissible.
The majority of transactions in usurious banks do not adhere to Sharia regulations, whereas transactions in Islamic banks generally do.
Examples of transactions in usurious banks: 1. Lending and borrowing with interest: This is precisely the forbidden usury. 2. Opening a current account: This is forbidden because it is assisting in usury and feeding it.
Examples of transactions in Islamic banks: 1. Sharia-compliant (profit-sharing): The client invests their money in the bank as a partner in profit and loss. 2. Sharia-compliant (cost-plus financing): The bank purchases the requested commodity and then sells it to the client after it enters its possession (guarantee). 3. Opening a current account: This is a loan to the bank without interest.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 58851
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy