The Ruling on Working in Interest-Based Banks in Islam

Author: Dr. Muhammad Zia-ur-Rahman Azmi (رحمہ اللہ)

Islamic Ruling on Working in Interest-Based Banks

There is no doubt that working in banks that engage in interest-based transactions is not permissible in Islam. This is because such employment involves assisting in sin and transgression, which is explicitly prohibited in the Qur'an.

Allah ﷻ commands:

"And cooperate in righteousness and piety, but do not cooperate in sin and aggression."
[Surah Al-Ma'idah: 2]

Additionally, it is authentically narrated that the Prophet (ﷺ) cursed four categories of people related to Riba (interest):
1️⃣ The one who consumes interest (i.e., the borrower).
2️⃣ The one who pays interest (i.e., the lender).
3️⃣ The one who records the transaction (i.e., the scribe or banker).
4️⃣ The one who witnesses the transaction (i.e., the approving authorities).

The Prophet (ﷺ) further declared:

"They are all equal (in sin)."
[Sahih Muslim, Hadith No. 1598]

Thus, anyone who directly or indirectly facilitates interest-based dealings falls under this severe prohibition and curse.

📚 Reference: Ibn Baz, Majmu' al-Fatawa wa al-Maqalat (Volume 19, Page 415)
 
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