Differece b/w conventional and Islamic banking

Question

  how are you I am baba here I want to know about banking so many peoples are savaging there money in Islamic banking like alfallah bank, mezan bank,  they are paying monthly some amount  that is in lost and profit basses I want to know weather  this amount is Riba or hallal.Or tell me which is the best place to invest money because if we are investing our money in some company sometime they are cheating and  we will not get back our capital . Now I think you understand my question my so many friend  wants to know about  riba and hallal profit diffrance. Weather investing in Islamic bank our money Is ok or not.BEST REGARDS    THANK YOU

Answer

wa alaikumussalam

1. fine alhamdulillah
2. till such banks are working under authentic sharia Advisers ,its allowed to invest in islamic banking, especially all islamic banks working in Pakistan. i think Meezan is best as they have larger network and numbers of services.
3. differences are clear:
1. on depositing side , islamic banks offer Mudaraba i.e a business in which capital is from depositors and management is from bank under necessary sharia conditions...... conventional banks accept money as a loan.
2. on investment side they use halal business modles like Murabaha, leasing, diminishing musharka etc....... conventional banks invest mainly in loans
3. although its on profit and loss basis , but normally fluctuated profits r paid which create resemblance with Riba. but its a wrong perception.actually the  diversity of business minimize the risks and result is always a net profit
4. moreover sharia monitoring and audit system is also working.

Conventional banking and prize bonds

Question
DEAR SIR!
My name is Danish and I want to ask you about the BANK Job. My CHACHA (Father Brother) is working on a Bank since 20 Years ago. Now, I am become TABLIGHI and I heard that BANK JOB is Haraam for all.
So, whats your FATWA on this? My CHACHA said that If I leave this JOB so, how will my home run and what about my SON?
What will happen?

2nd Question:
Whats your FATWA about the PRIZE BOND of BANK? My CHACHA said us that it is not HARAAM. Its just your LUCK?
So, whats your FATWA about this?
Answer
Wa alaikumusalam

Answer of 1st Question:

1. Conventional banking majorly based upon interest based transaction and it is the worst sin mentioned in Quran. Moreover a hadith quotes: May Allah make the person who eats interest n who provides it n even who writes the document away from his mercy. Another Hadith quotes: the flesh build by HARAM is suitable to go Hell. So due to so many Aayaat and Ahadith working in a conventional bank and nourishing children through it is strictly prohibited.

2. Islam has not restricted all fields on Muslims; it restricts only some of them to avoid individual and social detriments. Your uncle himself selected wrong field.

3. However if he offers Istigfar, Allah will accept it n Islam will have several solutions for him. He can join non interest based banking or he can serve for any other company or state bank. Though it may vary your lifestyle but sacrificing here will protect you hereafter insha Allah.

Answer of 2nd Question:

Prize bond is Haram. It’s a combination of Interest and Gamble (jua). Gamble is totally a game of luck but Allah Ta`alla prohibits it in Quran.How can we say it Halal due to such apparent reasons.