Fatwa ID: 06686
Answered by: Maulana Mohammed Dilwar Hussain
Question:
Is it permissible to work as an IT officer or Software Engineer in a riba-based bank?
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
The fact that you are concerned about where your earnings are accrued from is praiseworthy. It makes evident your consciousness of Allāh Ta’ālā and your desire to obey Him. The Prophet ﷺ said that earning a halal income is an obligation beyond other obligations. [Shu’bul Iman lil Bayhaqi: Hadith 8367] [1]
Allāh Ta’ālā also commands {do not aid in sin.} [Surāh Mā’idah, 5:2] [2]
Furthermore, the Prophet ﷺ has said “A time will come when one will not care how one gains one’s money, legally or illegally.” [Sahih Bukhari: Hadith 2059] [3]
“Whosoever fears Allāh (by abstaining from sins and fulfilling his obligations) Allāh will open up ways for him out of every difficulty. Allāh will provide sustenance for him from such avenues which he least perceives. Whoever places his trust in Allāh, Allāh will suffice him. Indeed, Allāh will accomplish His purpose. Allāh has already set a measure for all things.” [Surah at-Talaq; 65:2-3] [4]
The Prophet ﷺ said that “Do not delay (in earning) sustenance, for the servant will not die until his last provisions reach him. (So) take what is Halāl and leave what is Harām.” [Sahih Ibn Hibbān: Hadith 3239] [5]
These are reminders for us that our earnings have already been fixed by Allāh Ta’ālā. Now, whether we choose to receive these earnings through Halal means or Haraam is up to us. One way or another, whatever has been destined for us will reach us.
Nonetheless, it is upon us to go out and actively seek a Halal means of earning and then we place our trust in Allāh Ta’ālā to grant it to us. This has always been the method of Allāh Ta’ālā, that is, we first have to make an effort and then Allāh’s aid will reach us.
With banks, the greatest concern is in regard to usury/interest. Allāh Ta’ālā has admonished us greatly in this regard;
{Those who consume riba (usury/interest) cannot stand (on the Day of Resurrection) except as one stand who is being beaten by Satan into insanity. That is because they say, “Trade is (just) like interest.” But Allāh has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allāh. But whoever returns to (dealing in interest or usury) – those are the companions of the Fire. They will abide therein eternally. Allāh destroys ribā and nourishes charities, and Allāh does not like any sinful disbeliever.} [Surah Al-Baqarah; 2:275-276] [6]
Allāh’s Messenger ﷺ cursed the accepter of interest and its payer, and one who records it, and the two witnesses, and he said: They are all equal. [Sahih Al-Muslim; Hadith 1598] [7]
The Messenger of Allāh 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; Hadith 3333] [8]
A person’s work can primarily be broken down into two parts; the actual work that they do and the company’s source of revenue which is used to pay their wages/salaries. Thus, if a person was to work as a cashier, manager, clerk, etc. where they would be directly involved in the interest/usury which banks are involved in, whether witnessing it, drawing up the contracts, collecting interest payments and etc. These things would make one’s actual work Harām.
However, in your specific situation, it seems that you will not be implicit in any harām based activities so your job role would be permissible to accept. In your case, consideration would need to be made in regard to where the bank attains its profits which they use to pay your salary.
Banks take in deposits from consumers and businesses and pay interest on some of the accounts. In turn, banks take the deposits and either invest those funds in securities or lend them to companies and to consumers. Since banks receive interest on their loans, their profits are derived from the spread between the rate they pay for the deposits and the rate they earn or receive from borrowers. Banks also earn interest income from investing their cash in short-term securities like U.S. Treasuries.
However, banks also earn revenue from fee income that they charge for their products and services that include wealth management advice, checking account fees, overdraft fees, ATM fees, interest and fees on credit cards.
The primary business of a bank is managing the spread between deposits that it pays consumers and the rate it receives from their loans. In other words, when the interest that a bank earns from loans is greater than the interest it pays on deposits, it generates income from the interest rate spread. [9]
Even though banks have multiple sources of income, the primary source is interest. Thus, based on the above information, it would not be permissible for a person to hold any position in a commercial bank. The ruling for investment banks would be different.
Only Allāh knows best.
Written by Maulana Mohammed Dilwar Hussain
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
[1]طَلَبُ كَسْبِ الْحَلَالِ فَرِيضَةٌ بَعْدَ الْفَرِيضَةِ
[2]وَلَا تَعَاوَنُوا۟ عَلَى ٱلۡإِثۡمِ وَٱلۡعُدۡوَ انِۚ{
[3]يَأْتِي عَلَى النَّاسِ زَمَانٌ، لاَ يُبَالِي الْمَرْءُ مَا أَخَذَ مِنْهُ أَمِنَ الْحَلاَلِ أَمْ مِنَ الْحَرَامِ
[4]وَمَن یَتَّقِ ٱللَّهَ یَجۡعَل لَّهُۥ مَخۡرَجࣰا. وَیَرۡزُقۡهُ مِنۡ حَیۡثُ لَا یَحۡتَسِبُۚ وَمَن یَتَوَكَّلۡ عَلَى ٱللَّهِ فَهُوَ حَسۡبُهُۥۤۚ إِنَّ ٱللَّهَ بَـٰلِغُ أَمۡرِهِۦۚ قَدۡ جَعَلَ ٱللَّهُ لِكُلِّ شَیۡءࣲ قَدۡرࣰا{
[5]لا تستبطِئوا الرِّزقَ فإنَّه لن يموتَ العبدُ حتَّى يبلُغَه آخِرُ رزقٍ هو له فأجمِلوا في الطَّلبِ: أَخْذِ الحلالِ وتَرْكِ الحرامِ
[6]ٱلَّذِينَ يَأۡكُلُونَ ٱلرِّبَوٰاْ لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِي يَتَخَبَّطُهُ ٱلشَّيۡطَٰنُ مِنَ ٱلۡمَسِّۚ ذَٰلِكَ بِأَنَّهُمۡ قَالُوٓاْ إِنَّمَا ٱلۡبَيۡعُ مِثۡلُ ٱلرِّبَوٰاْۗ وَأَحَلَّ ٱللَّهُ ٱلۡبَيۡعَ وَحَرَّمَ ٱلرِّبَوٰاْۚ فَمَن جَآءَهُۥ مَوۡعِظَة مِّن رَّبِّهِۦ فَٱنتَهَىٰ فَلَهُۥ مَا سَلَفَ وَأَمۡرُهُۥٓ إِلَى ٱللَّهِۖ وَمَنۡ عَادَ فَأُوْلَٰٓئِكَ أَصۡحَٰبُ ٱلنَّارِۖ هُمۡ فِيهَا خَٰلِدُونَ . يَمۡحَقُ ٱللَّهُ ٱلرِّبَوٰاْ وَيُرۡبِي ٱلصَّدَقَٰتِۗ وَٱللَّهُ لَا يُحِبُّ كُلَّ كَفَّارٍ أَثِيمٍ {
[7]حَدَّثَنَا مُحَمَّدُ بْنُ الصَّبَّاحِ، وَزُهَيْرُ بْنُ حَرْبٍ، وَعُثْمَانُ بْنُ أَبِي شَيْبَةَ، قَالُوا حَدَّثَنَا هُشَيْمٌ، أَخْبَرَنَا أَبُو الزُّبَيْرِ، عَنْ جَابِرٍ، قَالَ لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَكَاتِبَهُ وَشَاهِدَيْهِ وَقَالَ هُمْ سَوَاءٌ .
[8]حَدَّثَنَا أَحْمَدُ بْنُ يُونُسَ، حَدَّثَنَا زُهَيْرٌ، حَدَّثَنَا سِمَاكٌ، حَدَّثَنِي عَبْدُ الرَّحْمَنِ بْنُ عَبْدِ اللَّهِ بْنِ مَسْعُودٍ، عَنْ أَبِيهِ، قَالَ لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَشَاهِدَهُ وَكَاتِبَهُ .
[9] https://www.investopedia.com/articles/stocks/07/bankfinancials.asp
