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Banking (12):

Q11: What is your ruling on dealing with banks?
Is there difference between Government and Private banks; Muslims and Non Muslim banks?
Is it permissible for me to work in banks?

A: 1. It is allowed to deal with government banks provided that it is not with the intention of collecting interest and it must be on behalf of the religious ruler- the Merji.
2. If it was a private bank, then it is allowed to collect interests but not allowed to pay it to banks owned by non Muslims and it is not allowed to collect interest nor it is allowed to pay it in the case of banks owned by Muslim.
3.You are allowed to work in banks provided that you do not participate in making a deal that involves interests – Riba - whether by becoming part of it – by representing the bank in lending for instance – or by editing it.

Q12: I have been offered a position in an "Islamic" Bank, which offers its services to the public on the premise that there is no interest involved. So far as I have been understand the mechanics of Islamic Banking and Takaful [Islamic Insurance] the only change that has come into the picture is the change of terminology, otherwise the interest element is very much there. They just call it mark-up?

A: It is not permissible to edit deals that involve interest nor it is permissible to participate in forming such contracts by being one of the parties of the deal. Based on compulsory precaution, it is not permissible to count the contracts that involve interest. Working in banks to do any other work is permissible.

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