The Objectives of the Prohibition of Riba By: Elhadi Habbani

Individuals Versus Institutions:

Some writers also assert that the contemporary banks and other intermediary institutions, which are large in their scale, did not exist at the pre-Islamic period and the time of the Prophet, so the interest imposed by the current intermediaries doesn't mean the prohibited Riba in Islam. And they think that the prohibited Riba involves individuals only. So in their view paying interest by individuals for these intermediaries should not be prohibited because it is most likely difficult for individual to exploit such a larger institutions.
The opponents of this theory claim that the prohibition of Riba in Quran is inclusive all-around the glob and doesn't differentiate between institutions and individuals. They also claim that since, borrowing and lending is one of the major functions of intermediaries they definitely involves exchanging Riba. So, paying or receiving interest fall under the prohibition of Riba in Islam, no matter, it has been practiced by individuals or institutions.

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