• Transactions & Dealings >> Interest & Insurance

    Question ID: 5427Country: India

    Title: One of my uncle has invested some money in shares of a bank several years back and the share prices have appreciated quite a bit.Is it right for him to stay invested in that sector when we know that the banking industry survives on their core business i.e recieving interest on amount disbursed as loan to its customers which is not legal according to Shariat? Plz suggest a solution what should he do now if it is not right.

    Question: One of my uncle has invested some money in shares of a bank several years back and the share prices have appreciated quite a bit.Is it right for him to stay invested in that sector when we know that the banking industry survives on their core business i.e recieving interest on amount disbursed as loan to its customers which is not legal according to Shariat? Plz suggest a solution what should he do now if it is not right.

    Answer ID: 5427

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 675/628=D/1429)

     

    All or major parts of transactions in banks are interest-based, therefore the profit gained from a bank has the same ruling. That is why taking share of banks is unlawful and haram. The profit earned out of the share is also unlawful and just like interest. You should calmly make your uncle understand about evils and curses of interest saying that it is in Hadith: "A unit of amount from interest, when he knows, is worse 36 times than to commit adultery. The prophet صلي الله عليه وسلم)) has cursed those who take and give interest. (Mishkaat) You should persuade your uncle to withdraw the shares, take back his money and give the extra money received from the deposited amount to the poor and needy without intent of getting reward.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India