Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

If suppose someone is interested in pursuing a career in Islamic Bank which is an evolving sector and in order to learn the intecracies of banking and to expose himself with the conventional banking he joins a conventional bank with a clear intention that he is doing this only for a limited period so that he can learn about banking.in this condition would this working in conventional bank (whose functioning is based on interest) be haram for him?

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

Learn Conventional Banking Interest

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

Allah says in the Holy Quran Chapter 2 Surah Baqarah verse 274-276:

But those who devour ‘riba’ become like the one whom Shaitaan has bewitched and maddened by his touch. They have been condemned to this condition because they say, “Trade is just like ‘riba”, whereas Allah has made trade halaal and ‘riba’ haraam. Henceforth, if one abstains from taking ‘riba’ after receiving this admonition from his Lord, no legal action shall be taken against him regarding the ‘riba’ he had devoured before: his case shall ultimately go to Allah. But if one repeats the same crime even after this, he shall go to Hell, where he shall abide for ever! Allah deprives ‘riba’ of all blessing and develops charity, and Allah does not like an ungrateful, sinful person.

Allah says further in the Holy Quran Chapter 2 Surah Baqarah verse 278:

O Believers!, fear Allah and give up that ‘riba’ which is still due to you, if you are true believers. But if you do not do so, then you are warned of the declaration of war against you by Allah and His Messenger!

Allah says in the Holy Quran Chapter 4 Surah Nisa verse 161:

That they took ‘riba’, although they were forbidden. And that they devoured men’s substance wrongfully. We have prepared for those among them who reject faith a grievous punishment (of Hell Fire)!

Al-Tirmidhi Hadith 2829 Narrated by Ali ibn AbuTalib

Ali heard Allah's Messenger (saws) invoke the curse of Allah on those who took usury, those who paid it, those who recorded it, and those who refused to give sadaqah.

If one strives or facilitates for any business which deals exclusively in what has been specifically declared as ‘haraam’ or unlawful by Allah and His Messenger (saws), like ‘riba’, prostitution, pornography, intoxicants, etc., then without an iota of a doubt, one would indeed have a share in the sin according to one’s level of participation.

There is absolutely no doubt that the conventional banking system is based on the system of ‘riba’, and even though one might not be involved himself in consuming ‘riba’, their working in such institutions would make them an accomplice in promoting and facilitating what has clearly been declared forbidden by Allah and His Messenger (saws).

One cannot say with absolute conviction that the earning of every person working in a conventional bank is unlawful or haraam; but without an iota of a doubt, one would indeed have a share in the sin according to one’s level of participation. It would definitely be prudent and wise of the believers to fear Allah and seek to employ their talents and earn their livelihood from a source which is not doubtful.

There is no harm if one wishes to only study or learn the intricacies of conventional banking, but to earn some material benefit or be paid a salary for facilitating the business of an interest-based conventional bank, would without a doubt involve the person in an element of what is declared unlawful by Allah and His Messenger (saws)….and thus that person would bear a share of the sin according to their level of participation.

If one indeed wishes to develop a career in Shariah compliant Islamic Banking, one may very well study, learn, and expose themselves to this lawful way of banking; for there are several institutions which offer good courses and degrees in Shariah compliant banking itself. It is definitely not necessary for one to study or be an expert in conventional interest-based banking for one to develop a career in Islamic Banking.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan