Ribā (Interest) Collection Fund
It is imperative that each and every one of us, rids ourselves of money that is obtained through interest. On the basis of this, City Centre Da’wah has established a Ribā Collection Fund. We will use the money that is collected to build, repair and maintain masājid (mosque) toilets around the world, in communities that have no toilet facilities for their masājid (mosques), or find it difficult to maintain their upkeep. The first masjid (mosque) that we intend to assist, is the Madina Masjid, located in Zimbabwe, Southern Africa.
Shaykh `Abdul-`Aziz ibn Bāz رحمه الله was asked, what a person should do with interest that banks have paid them. He replied saying;
“Ribā (usury/interest) is one of the most detestable prohibitions.
Allāh سبحانه و تعالى says:
وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا
...whereas Allāh has permitted trading and forbidden Ribā (usury).
[Surah al-Baqarah; 275]
Allāh سبحانه و تعالى also says:
يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِن كُنتُم مُّؤْمِنِينَ
فَإِن لَّمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِّنَ اللَّهِ وَرَسُولِهِ ۖ وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ
O you who believe! Fear Allāh and give up what remains (due to you) from Ribā (usury) (from now onward), if you should be believers.
And if you do not do it, then take a notice of war from Allāh and His Messenger but if you repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums).
[Surah al-Baqarah; 278 - 279]
Accordingly, Ribā (usury/interest) is a detestable sin and one of the most detestable major sins. If you know that you have obtained any usurious money, then it is obligatory upon you to get rid of it through giving it to the poor and the needy, or through donating it in some charitable projects, such as founding public toilets, paving roads, building walls around graveyards, and other projects which people need, without taking any of it for yourself. If you were ignorant of the ruling and learned about it later, then you will not be punished for the past.
Allāh سبحانه و تعالى says:
وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا
ۚ فَمَن جَاءَهُ مَوْعِظَةٌ مِّن رَّبِّهِ فَانتَهَىٰ فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللَّهِ ۖ وَمَنْ عَادَ فَأُولَٰئِكَ أَصْحَابُ النَّارِ ۖ هُمْ فِيهَا خَالِدُونَ
...whereas Allāh has permitted trading and forbidden Ribā (usury).
So whosoever receives an admonition from his Lord and stops eating Ribâ (usury) shall not be punished for the past; his case is for Allâh (to judge); but whoever returns [to Ribâ (usury)], such are the dwellers of the Fire - they will abide therein forever.
[Surah al-Baqarah; 275]
If you were involved in any form of usury while you did not know the ruling, and then Allāh guided you, you shall not be punished for the past.”