Fatwa ID: 03322
Answered by: Maulana Javed ibn Nazir Kachhalia
I am a born Muslim of age 20 studying in an engineering university living in a hostel. My father is an MA economics and has been working in banks as manager before I was born. I have been offering salah since puberty and my father is also a practising Muslim. But the problem is in my society people don't trust the ulema and consider them untrained to issue fatwas on the modern problem.
When I talk to my father about riba he says the interest charged by banks in Pakistan are actually inflation, as the value of money is increasing with time. So the loan of 100rupees will not be 100rs after 10 years as its value has decreased. So you must put in some percentage of inflation. On this basis and his distrust of ulema, he does his own "ijtihaad" and thinks for himself that: what he is doing is halal as it is actually inflation and the ulema are not fit to issue a fatwa on this because they don't know economics.
I for myself don't consider it halal. But as I am dependent on my father for my needs so I have to take money from him, although I dislike it. The problem is I go on tableegh and I use that money to feed my brothers in tableegh. Secondly, I give from that money in charity, and as what I am getting as pocket money is my rizk I clearly observe that my money grows when I give it in charity and barakah enters it Alhamdulilah. I am sorry for the long background but I just wanted to ask would it be halal for me to spend this money on my brothers or to give it in charity knowing that this is from riba?
بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم
In the name of Allah, the Most Gracious, the Most Merciful
What we know is that if there is any kind of interest or riba involved this is not permissible at all.
Allah SWT has cursed those kinds of loans:
“Allah has permitted transactions and has forbidden riba (interest)” (Surah Al Baqarah v.275)
In the Hadeeth:
Narrated Abdullah ibn Mas'ud: The Messenger of Allah (ﷺ) cursed the one who accepted usury, the one who paid it, the witness to it, and the one who recorded it. (Sunan Abi Dawood: 3333)
From the above, we understand that it is ‘Haraam’ and it should be avoided.
The bank system in Pakistan will have different policy or guidelines, therefore, I would advise you to get in touch with a scholar that has got experience in this field. If you can get through and communicate with Mufti Taqi Usmani Sahib will be ideal, Insha’Allah.
But we can give you some information in regards to the word or term utilized and inflation.
You can find more information in regards to inflation on the link: http://daruliftabirmingham.co.uk/the-reality-of-inflation/
The above link is our website in which we post Q&A, and it will give you a clear idea Insha’Allah.
Only Allah knows best.
Written by Maulana Javed ibn Nazir Kachhalia
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham