Sharʿī Ruling on Employment in Interest-Based Banks and Islamic Evidences
Source: Fatāwā ʿIlmiyyah (Tawḍīḥ al-Aḥkām), Vol. 2, p. 217
What is the Sharʿī ruling on working in the present-day banking system, which is based on interest (ribā)? If such employment is not permissible, then how will the banking system function?
Al-ḥamdu lillāh, waṣ-ṣalātu was-salāmu ʿalā Rasūlillāh, ammā baʿd!
The current banking system is founded upon interest (ribā), and in Islamic Sharīʿah, both taking and giving interest are strictly prohibited and ḥarām. On this basis, employment in such a system is also not permissible.
It is narrated from Sayyidunā Jābir رضي الله عنه:
"لعن رسول الله صلی الله علیه وسلم آكل الربا و موكله و کاتبه و شاهدیه وقال: «هم سواء»”
(Ṣaḥīḥ Muslim: 1598)
Meaning: The Messenger of Allāh ﷺ cursed the one who consumes interest, the one who pays it, the one who writes the contract, and the witnesses to it — and said: They are all equal (in sin).
Allah ﷻ says:
﴿ولا تعاونوا علی الاثم والعدوان﴾
(Sūrah al-Māʾidah: 2)
Translation: “Do not help one another in sin and transgression.”
This verse proves that participating in or supporting an interest-based system is impermissible.
Employment in an interest-based banking system is Sharʿī impermissible, as it involves being part of an action upon which the curse of the Prophet ﷺ has been pronounced and which Allah ﷻ has forbidden us from assisting in.
ھذا ما عندي والله أعلم بالصواب
Source: Fatāwā ʿIlmiyyah (Tawḍīḥ al-Aḥkām), Vol. 2, p. 217
Question:
What is the Sharʿī ruling on working in the present-day banking system, which is based on interest (ribā)? If such employment is not permissible, then how will the banking system function?
Answer:
Al-ḥamdu lillāh, waṣ-ṣalātu was-salāmu ʿalā Rasūlillāh, ammā baʿd!
The current banking system is founded upon interest (ribā), and in Islamic Sharīʿah, both taking and giving interest are strictly prohibited and ḥarām. On this basis, employment in such a system is also not permissible.
Sharʿī Evidence from Ḥadīth:
It is narrated from Sayyidunā Jābir رضي الله عنه:
"لعن رسول الله صلی الله علیه وسلم آكل الربا و موكله و کاتبه و شاهدیه وقال: «هم سواء»”
(Ṣaḥīḥ Muslim: 1598)
Meaning: The Messenger of Allāh ﷺ cursed the one who consumes interest, the one who pays it, the one who writes the contract, and the witnesses to it — and said: They are all equal (in sin).
Evidence from the Qur’ān:
Allah ﷻ says:
﴿ولا تعاونوا علی الاثم والعدوان﴾
(Sūrah al-Māʾidah: 2)
Translation: “Do not help one another in sin and transgression.”
This verse proves that participating in or supporting an interest-based system is impermissible.
Conclusion:
Employment in an interest-based banking system is Sharʿī impermissible, as it involves being part of an action upon which the curse of the Prophet ﷺ has been pronounced and which Allah ﷻ has forbidden us from assisting in.
ھذا ما عندي والله أعلم بالصواب
