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Published on 7th May,
2002.
They
Insist That Business is Like ar-Riba
By Mohammad
Shafi J. Aga
"And Allah has permitted business (bai'a) and
prohibited Ar-Riba,"
The Qur'an says in continuation of
the captioned quote from verse Q: 2.275.
The subject caption above is a quote from the
Qur'an - part of
275th verse in Chapter 2 thereof [Q: 2.275].
I do not have before me now any historical evidence of people
living at the time of revelation of the Qur'an saying so, but I
know of people in my own age - some of the religious leaders of my
own Faith- saying so. They say that the banking business is
ar-Riba. In fact, they
have gone even beyond the Qur'anic quote. They do not say that
this business is like ar-Riba. They say it is ar-Riba.
By business, of course, what they mean here is the earnings
that it generates. Since a bank invests a substantial portion of
the money it holds in debt instruments - in giving loans for trade
and industry etc. - the interest accrued on such loans constitutes
a major source of its earnings.
Most of the money that a bank gets as interest goes in meeting
bona fide expenses like salaries to staff, office rentals and equipment, interests
paid to depositors etc. The rest of it is the net earning of the bank. The open market forces oblige the bank to keep its
net earning/profit margin as low as possible.
Banking Is a Legitimate Business
Banking is thus a legitimate business as any other. Whereas
other businesses provide materials and services conveniently to
their customers, banking business provides purchasing power
(money). Banking business thus fulfils a legitimate necessity in
human society.
The religious leaders deride this legitimate business as
unlawful because part of its profit comes from interest. And, in
their view, ar-Riba that the Qur'an prohibits, is interest, and
nothing but interest.
There is no Qur'anic basis for this interpretation of the
religious leaders. The Arabic word Riba literally means
increase/gain/growth. So all kinds of increases ought to be
covered by this general term.
I can effect an increase in my wealth by evading Government
taxes. I can effect the increase by paying my employees less than
what they actually deserve to get. I can effect the increase by
shirking the work given to me by my employer and attending to my
own private work during the employer's office hours. I can effect the increase by
unduly hiking my profit margins on the goods I sell, by economic
exploitation of my hapless customers. There are umpteen numbers of other dubious ways in which I can
effect increases in my wealth. But the religious leaders insist
that the increase, effected by taking interest only, is prohibited
as ar-Riba. And they give no Qur'anic basis for this
interpretation.
A careful study of the very first verse [Q: 30.39], as also the
subsequent ones, revealed in the matter of ar-Riba, would show
otherwise. It would show that the increases effected by the
dubious means such as the ones mentioned in the paragraph
preceding the last one above, rather than interest as such, that
are all covered in the Qur'anic Concept of ar-Riba.
Allah Has Permitted Business
When one effects an increase in one's wealth by adopting any of
these dubious means, one perpetrates an injustice on someone else.
Allah condemns and abhors every kind of injustice. By prohibiting
ar-Riba, He has prohibited all economic injustices.
"And Allah has permitted business (bai'a) and
prohibited Ar-Riba," the Qur'an says in continuation of
the captioned quote from verse Q: 2.275.
Despite the divine permission thus given to business, the
religious leaders insist that the interest-based banking business
is a prohibited one. Look what the Qur'an says in this context:
"Those who devour
ar-Riba stand not but as one on whom
has the Satan cast his spell by touch. That is because they insist
that the business is like ar-Riba!"
This, in fact, is the
beginning part, which includes the captioned quote, of the same
said verse Q: 2.275.
Indeed! Persons influenced by Satan only could call a divinely
permitted thing prohibited. Under this satanic influence, we,
Muslims substitute the divine concept of ar-Riba with its
man-made interpretation as interest and nothing but interest. The Satan
must be congratulating himself immensely! For, by this
masterstroke, he is not only impoverishing the Muslims, his
arch-enemies, economically, but has also succeeded in keeping them
blissfully unaware of the real ar-Riba growing - and growing
luxuriantly - in their own backyards.
The unpalatable and bitter truth is
that we Muslims are ourselves steeply involved in ar-Riba dealings
- more so than the people living in some of the well-developed
countries are. Because, ar-Riba is corruption. It is, in the
Qur'anic concept, the unjust usurpation of others' dues in
transactional dealings. It is economic injustice. A sincere
and diligent study of the Qur'anic verses on ar-Riba, I am sure,
will reveal this fact to you.
Study the relevant verses, therefore, please and save yourself
from Hell fire! For, the said verse, Q: 2.275, ends as
follows,
"And the ones who persist (in Ar-Riba dealings) shall
be those who would inhabit the Fire, therein to abide!"
Mohammad Shafi J. Aga
Author of The Qur'aanic Concept Of Ar-Riba
mailto:mjaga@vsnl.com |
