Thu 16 رمضان 1447 (05 Mar 2026)
[Repaying a debt by bank-to-bank transfer and related matters1]
Mufti:
Alsayyed Muhammad b. Abdallah Awad Al-Muayyady
Fatwa number: 20915
Number of views: 0
[Repaying a debt by bank-to-bank transfer and related matters1]
Fatwa number: 20915
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Question: A man has a bank balance and owes a debt to another man who also has a bank balance. The creditor phones the debtor asking him to settle by bank transfer from the debtor’s account to the creditor’s account. The debtor contacts the bank and the transfer is executed. Is this method valid? Is the liability discharged? What if the bank collapses?
Answer—and Allah grants success: The bank in this scenario functions as an agent (wakīl) to pay the debtor’s liability and to receive on behalf of the creditor. The method is valid and the debtor’s liability is discharged. If the bank later becomes insolvent after completion of the transfer, the creditor has no recourse against the debtor.
Source: Min Thimār al-ʿIlm wa al-Ḥikmah vol.2
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