Please clarify the status of Riba for us, many of us still think that the riba which is haraam is no more

Question ID: 
1915
psu***@gmail.com asks:

Question

Assalamualaikum,

Please clarify the status of Riba for us, many of us still think that the riba which is haraam is no more, i.e the moneylenders used to lend loans and take riba on it unjustly high rates.

This is no more in vogue. Thus can one say that the interest of conventional banks is not riba. What else may be considered as Riba according to islamic legislation which is in vogue nowadays.

If a person is jobless since months then gets a job offer from bank as a server technician, will it be permissible to accept the job.

Answer

Walaikum salaam wa rahmatullah,

Respected brother, Riba has been clearly prohibited in our Shariah. In an interest based transaction, every single cent that is being paid as surplus will be regarded as Riba, whether it is a small amount or big amount. It is not based on whether the rate is low or high. Hence, the interest of conventional banks are totally haraam.

There are many transactions nowadays that has elements of Riba in it. For example, taking a loan from the bank, buying a car on leasing, health or house insurance, taking extra benefits from lending money, exchanging money incorrectly, etc.

As for working as a technician in a bank, one should know that it will be tolerable to accept the job especially if the person is in need because he will not be directly involved with interest. The principle is that any work that is permissible in itself will be permissible in the bank provided that it has no connection whatsoever with interest. However, the demand of piety is that he still avoids working in these places.

And Allah knows best,

Answered and approved by:
Our panel of Muftis
Jamiat ul ulama of Mauritius