Installing an ATM on one’s premises

Question:-

What is the ruling with regards to having a Capitec ATM, or any of the other commercial banks ATM

on our business premises?

Answer:-

Generally, banks pay a rental to shopkeepers or property owners who install ATM’s on their premises. Now, these banks generally derive the majority of their income from interest funds. In other words, clients borrow money from banks, or finance their properties or cars through the banks, and then pay back the principal loan together with interest (over and above the loan) to the bank, which is obviously Haraam. Based on the above, it will not be permissible to install ATM’s on one’s premises.

ALLAH TA’ALA KNOWS BEST!

ANSWERED BY:

Mufti Mohammed Desai

Date: 30 Rajab 1444 / 21 February 2023