Janab Mufti Sahib, Asslamaliykum To invest in the saving scheme of post office is lawful or not, (e.g. fixed deposit or monthly income etc.) the money invested in this scheme directly reaches to government of India. Government of India does not borrow nor finance to any person or any banking institution, GOI uses this money in national affairs to run various scheme, and interest paid on this saving/investment is given from it’s revenue income not from interest. In this situation, a Muslim can invest in above scheme or not and interest given in this scheme is interest or profit. Please sir?
Answer
(Fatwa: 810/688=B-1429)
Though the government does not invest the money of the aforesaid scheme in interest-based transactions but the rule of dividing profits gained form those money is purely interest. These profits are not divided as per the rule of partnership and Muzarabah, so the addition which is achieved on the accumulated amount of the abovementioned scheme is purely interest; therefore it is unlawful to partake in it.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband