BANKS SOME QUESTIONS
Is it allowed to deposit money in a
non-Muslim Bank in order to earn interest?
A) It is permissible to
deposit money in a non-Muslim bank with the condition of
interest because it is permissible to earn interest from
Q) Is it allowed to get a
loan from a non-Muslim Bank with the condition of paying
A) One can technically get
out of the prohibition by taking the money from a non-Muslim
Bank with the intention of istinqadh – that is, using the
wealth of non-Muslims which is available to you from them
willingly, according to their own laws. In this case, use of
that money will be permissible even if one will be forced to pay
CLARIFICATION (provided by Sayyid
the sake of clarification, I will translate the question I wrote
Ayatullah Sistani and his answer
(dated 12 Shaban 1417):
Is it allowed to deposit money in a non-Muslim Bank in order to earn interest?
A) It is permissible to deposit money in a non-Muslim bank with the condition of interest because it is permissible to earn interest from non-Muslims.
Q) Is it allowed to get a loan from a non-Muslim Bank with the condition of paying interest?
A) One can technically get out of the prohibition by taking the money from a non-Muslim Bank with the intention of istinqadh – that is, using the wealth of non-Muslims which is available to you from them willingly, according to their own laws. In this case, use of that money will be permissible even if one will be forced to pay interest.
CLARIFICATION (provided by Sayyid Muhammad Rizvi)
For the sake of clarification, I will translate the question I wrote to
Ayatullah Sistani and his answer (dated 12 Shaban 1417):
WORKING IN BANKS MORE QUESTIONS
>We can categorize these problems into 3:
>1-working for a business that earns from Haram ways most of the time.
>2-working for a business whose earnings are mixed Haram and Halal.
>3-working for a business whose earnings are mostly halal but
> is involved with some unlawful practices such as taking loans.
>For 1. and 2. maraje' have different opinions.>
>1. If a marja' does not see it wrong to work for a bank as long as the >employee's job is NOT directly involved with the Haram act (like
>cashing interest, signing off to the loans, negotiating, etc..) then >the same applies to a non-banking institution where the employee's task
>is not involved directly with a Haram act.
>BOTH, the maraaje's who categorically prohibit working for a bank -
>because most of its earnings are from Haram resources- (those maraje') >do prohibit as well working for a non-banking business most of whose
>earnings are from Haram ways.
>2. Marhoum Sayid khoei even goes beyond that to banning working for
>businesses that sell Haram products even though they sell Halal
>products as well (Such as a grocery store). Sheikh Tabrizi follows with the same:
> Q:what is the ruling of someone working in a store that sells among >many things, alcohol and pork, knowing that his intention is just to
>suffice himself and he cannot find another job and he cannot even save >much from his wages. (my comment:the question is emphasizing the need
>to work for food and shelter) A:It is not allowed for a Muslim to work >in such stores due to the weakness it reflects on Muslims; besides, the
>Halal jobs are plenty, and -quoting>Quran- whoever fears Allah, He would open an exit for him and bring him
>sustenance from where he would not expect" -Allah knows best.
> That was from Sheikh Tabrizi.
>However, Syd Sistani does not see a problem if the worker's tasks are not directly involved with the Haram. (See below)
>3. Your question falls under 3 which is less restrictive.If the business takes a loan as part of its financing, this by itself is not
>related to the actual earnings. So even there Sayyid Khooei would allow that.
>In summary, we need to focus on 2 things:
>- whether the business/corporation is majorly involved with haram earnings here Syd Sistani's ruling is that it is ok to work for them as long as your
> tasks themselves are not involved with the Haram, and do not pave the way for the Haram.
> Other maraje' may have differnt rulings like Sheikh Tabrizi for example.
>- whether the employee's job is directly involved with the Haram act (serving alcohol, paying or receiving interest, selling lottery, ...)> Here all of them find it Haram to do that job.
> (there might be some detailed differences when it comes to serving non halal meat to non muslims. We have to dig more.)
>The following are from>http://www.sistani.org/html/ara/menu/4/?lang=ara&view=d&code=54&page=17
>Q:A man works for McDonalds which doesn't sell alcohol but sells pork.
>He sometimes cooks the meat and served it to non-muslims who consider it halal. Is that ok?
>A:Based on obligatory precaution, he must avoid serving pork even to >those who consider it halal, although cooking it is allowed.
>Q: can one work in a restaurant that serves alcohol where the worker does not serve alcohol himself, but sometimes washes the dishes?
>A: cleaning the dishes/bowls is Haram if this paves the way to drinking or serving alcohol to others.>(my comment: this means that if those dishes are used for other purposes as well, then it would be ok).
>Can one work as a host for an airliner that permits and serves alcohol on board, and where the host(ess) is obliged to serve alcohol?
>A: it is ok to work for them but not to serve alcohol.
>Q: A store sells among many halal things, lottery tickets. Is it ok to work for them?
> Q:is a Muslim allowed to work in a grocery store that partially sells alcohol, knowing that his job is a cechier only.
>A:HE is allowed to accept money for non-alcoholic items; moreover, he >is allowed to accept the price of alcohol in case the seller (owner)
>and the customer are both non-Muslims.
>>If the ruling on this particular question you just asked is very >>restrictive, many of us would be in a dilemma. As you know, most
>>organizations rely on some level of borrowings to finance their >operations. Most of us work for such entities I would assume.
>>As a side note, my current employer is exceptionally unique in that >>they have zero debt on their books and do not use any kind of debt
>>instruments to manage their financial needs. This is rare even for a private entity.>>What concerns me about my current employer is that a couple of their
>>products are used to assist some defense related operations. I am not >>sure where to draw the line on this one.....perhaps it is best for us
>>to become self-employed and have better control of our source of income.
>>>>Thanks, this is useful. I would also like to know the position of >>>working in a non-banking organisation that takes interest-bearing
>>>loans from banks (Muslim owned or western) to finance some of its >>>activities. Any references to rulings would be appreciated.
>>> >As you know, this issue is not so simple. Many factors are involved:
>>> >whether the bank deals with interest, whether it is in an Islamic>>> country,
>>> >whether it is owned by muslims or non muslims, by a government or >>> >by individuals, whether the moneys deposited are muslim-owned or not ..
>>> >To make it simple, in general, most maraje' do not allow working >>> >for>>> banks
>>> >if the job entails dealing with interest and related matters >>> >(signing documents, contracts, depositing or withdrawing ...) Some
>>> >maraje' (like Sayid Khooei (ra)) even disallowed working at a bank >>> >categorically, even if the job is a jantor.
>>> >Today, most of them allow working for a bank if the job is not >>> >related to the interest transactions such as a computer programmer,
>>> >... Sayyid Sistani has mentioned in one of the books (below) that >>> >applies to muslims in the west: He classifies banks in the west as
>>> >non-muslim owned, and not run by muslims money (for the most part), >>> >therefore, the interest
>>> received>>> >from the bank to you is not ribaa, and these transactions are ok.
>>> >Therefore, a person can work for such banks. However, taking an >>> >interest-based loan from these banks is still prohibited with the
>>> >intention of interest etc..
>>> >Here are a few links/excerpts.
>>> >Ayt Tabrizi:
>>> >Ayt. Khamenei:
Interest on Bank deposits Issues (draft)
Despite best efforts for years we have not been able to finalise a one pg paper for practical use, for bank deposits only esp in gulf countries where the banks can be considered to be muslim banks. Conflicting views have come & all italics atleast need reconfirmation.It would be v useful if you can help as many people dont know about this & may use haram money.
I. Classification of Banks (for the purpose of banking sharia rules)
A.MUSLIM Bank (in any country incl kafir country) (m)
1a. 100% private (mp)
1b.100% government(need not be Islamic system)? (mg)
1c.Mixed (even if v small %of either pvt or govt) (mm)
B.KAFIR Bank(including kafir govt) (k)
1a. In muslim country (majority citizens are muslims) (km)?
1b. In Kafir country (kk)
Definition of Kafir bank( Urf?)no
In case of a mixture of Muslim & Kafir Bank rules of muslim bank will apply
Issue of Keeping deposit & taking interest
i Ayatollah Khoie ruling.The initial niyat should be that interest will not be demanded if not given,for all types of banks.(However one can even sign any document with any clause.)
*For mp bank
It is ok to receive & keep full interest.
*For mg,mm&km banks(Majhool ul Malik?)
Permission has to be taken from Marja/Vakil AND 50% of interest amount received is to be given as sadqa.(will be determined by live mujtahid.After passing agha khoi 50 % is'nt appplicable)
General permission can be taken or may be required every timeif mujtahid wants he can give general permission valed till his death
*For kk bank
It is ok to receive & keep full interest.
All these rulings including 50% is applicable even after passing away of Ayat Khoie.no
Other marjas ruling if less than 50 % cannot be used by mukallid of ayat khoie?
iiAyatullah Seestanis ruling
The niyat definition is different.The niyat should strictly be for safekeeping or other than to receive interest.(in book of agha sistani the masala of condition is this ;while depositing the amount one should not put the condition of intrest )
Same ruling then applies for the different types of banks as that of ayat Khoie
Except that in case of km bank it is 100% ok to take the interest amt????
Principal amount remains unaffected & can be withdrawn despite being deposited in mg,mm,km banks& getting mixed with other money
All the lines in italics need reconfirmation.