Abu Dawud

Benefits and Issues:
➊
Taking interest is undoubtedly forbidden (haram).
However, the capital of interest that is with the banks is, through the interest-based system, seized from the collective national wealth.
Therefore, if any interest accrues in the bank, it should be taken and spent on the general needs of the citizens.
For example, hospitals,
schools,
roads,
and the construction of bridges, etc., or it should be given to someone who has fallen into the trap of some other such affliction.
Since this is the wealth of the state,
it should be spent for the general citizens of the state without distinction between Muslim and non-Muslim.
(Benefits from Hazrat al-Sheikh Maulana Sultan Mahmood) To leave this money for those oppressors is against the public interest.
And Allah knows best.

➋
There is a great lesson in this for those in leadership.
That in matters of leadership and da'wah (inviting to Islam), one should especially keep oneself and one's relatives' hands clean.
Otherwise, one becomes a target of criticism from the general public,
and the da'wah is also not accepted.
Imam Abu Dawud has mentioned two hadiths here regarding riba (usury/interest).
In the first, all parties involved in the transaction of interest are cursed.
And in the second, it is stated that if any interest-based transaction exists, only the principal amount will be recovered.
From the words of the Messenger of Allah (sallallahu alayhi wa sallam), it is definitively established
that whatever is more than the principal is interest, and both taking and giving it are forbidden (haram).
The same kind of words are found in the Noble Qur'an:
(Falakum ru’usu amwalikum la tazlimuna wa la tuzlamun) (al-Baqarah 2:279)
Therefore, to say that the bank's interest, which is certainly more than the principal, is not riba, is absolutely wrong.
The verse of the Qur'an and this hadith have clearly defined interest:
That which is demanded in excess of the principal is interest,
and both taking and giving it are forbidden.
Some people say that since the bank earns profit from this money, why is taking more from the bank forbidden? The reality is that Islam only accepts the distribution of profit
that is actually obtained from trade.
Its form is that half, a third, or a quarter of the profit is agreed upon.
The second condition is that the wealth is not given as a loan, but is included in a partnership in trade, and all share in the responsibility of profit and loss in the business.
Similarly, if profit is obtained, whatever is actually obtained should be distributed according to the agreed ratio.
Where there is no partnership agreement in trade, and neither party shares in the responsibility of whether there is profit or loss, or whether it is more or less,
if the wealth is given as a loan,
and an agreement is made to take more than the principal at a fixed rate, even if there is a loss in the business, the principal along with the fixed addition is to be recovered in every case—then this addition to the principal is what is interest and is absolutely forbidden.
In the hadith and the verse of the Qur'an it is stated:
(la tazlimuna wa la tuzlamun) You take your principal; neither do you wrong others, nor are you wronged.
Its meaning is that by demanding more than the principal, you should not wrong the other party, and by withholding the payment of the principal, the other party should not wrong you.
Now, many new forms of mutual oppression between the parties have emerged.
The bank takes the wealth of poor people, widows, and orphans and earns immense profit from it.
Since the actual transactions are not in currency but merely by check,
a large portion of the currency remains safe with the bank as it is.
On the basis of this safe capital, loans and cards are issued in amounts greater than the currency present in the bank,
and many times more profit is earned.
Despite earning so much profit, the bank gives only a nominal, very small share of the profit to the poor depositors, orphans, and widows, and swallows up the remaining large portion itself.
What is given to people
is not even, let alone profit, equal to the decrease in the value of currency that is deliberately caused from time to time.
In this way, even in the interest that the bank gives,
it commits oppression.
This is a great deception; people are misled
that "we are giving you a share from the profit we earn,"
i.e., "we are making you partners in the profit of trade," but no partnership agreement in trade is made with them.
Because in that case, a much larger share would have to be given.
With them, the agreement is of loan and interest.
This act of plundering and deception is supported by law and government.
According to hadith number 3333, employment in interest-based banks is also forbidden,
because every kind of participation in interest-based business—writing, witnessing, all—incurs the curse.