Banking: Using Ribā-Based Banking for Deposits and Loans

Practical Laws of Islam as per the teachings of Imam Khamenei

Banking: Using Ribā-Based Banking for Deposits and Loans

English:

Question #1914:

If the banking system is based on ribā, what is the view on using it for depositing/borrowing money?

Answer #1914:

There is no objection to depositing money with the bank under the title of a ribā-free loan. Nor is there any objection to borrowing money from the bank on a ribā-free basis. As for ribā-based borrowing, it is absolutely ḥarām as a matter of religious law, albeit the loan contract per se is valid.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Banking