Q: Is “musawamah” in Islamic banks halal or haram. I mean Riba-Free or not? Kindly guide. In our country Islamic banks sell consumer goods according to them which they have stocked through this financing mode on installments. Kindly guide.
A: In the present day, Islamic banks are not at all reliable. We cannot sanction any of their workings on account of the unpleasant experiences we have had with them. Unless we know exactly how they operate and how they conduct themselves we cannot say that this particular deal is permissible. Many a times their clients complain that they have done a pure riba based transaction and this is just called muraabahah for their convenience in order to appease their minds and the minds of their clients.
And Allah Ta’ala (الله تعالى) knows best.
Answered by:
Mufti Ebrahim Salejee (Isipingo Beach)