The Theories of Riba and Interest

There were not any difference of opinion about nature and scope of Riba among jurists, commentators and other Islamic scholars until one-hundred years ago. Islamic scholars were about to use bank while capitalism system was developing as well as the entry of banking system into Islamic communities in one hand and observe the bank activity combined with interest loan which is forbidden in Islam on the other hand. Some scholars began to design a new pattern for bank and some of them began to present a new interpretation of Riba to prescribe interest and conventional banking system. Some of these interpretations were accepted by the scholars because of their reference to Quran, traditions and historical texts so that a lot of books and articles were written to violate or affirm them. Theories which are analyzed according to historical record and evidence are: the theory of appropriating forbidden increasing Riba for the extension of the period of a contract and permitting the interest of loan, the theory of appropriating Riba to notorious interest and permitting justice interest, the theory of appropriating Riba to the interest of consumption loans and permitting the interest of production (business) loans, the theory of substantive difference between Riba and interest, the theory of appropriating Riba to private banks interest and the theory of the economic and social necessity of Riba. Although some of these theories have been shined in their ages and some of them have not serious supporter among religious scholar lawyers and economists yet but they have not any stable base by way of critics and can not be a base for issuing religious opinions (Fatawa) and practice. Therefore bank and other credit and financial institution transactions should not regulate on the basis of the new interpretations of Riba but it should regulate on the basis of religious permitted transactions.