Question

It is said that interest earned on savings in bank account if given to deserving people is allowed in Islam and it does not fall within the ambit of riba. Pease comment on this view.

Answer

We believe that giving away the money earned as interest does not change the nature of the income. A simple example can help us understand the issue. If a man robs someone and then helps an oppressed person that would not change the nature of the income he gave away. Similarly the money earned as riba remains riba even after being spent on worthy causes. It does not change its nature. However, by giving away the amount earned as interest means the person has not devoured riba. God-conscious people do not voluntarily receive riba. Nor do they enjoy it. This way they show their commitment to follow the divine commands. Such people could validly take the amount that is lost in inflation. Giving away even the lawful part makes their deed more worthy.

Answered by: Tariq Mahmood Hashmi

Date: 2015-03-10