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Transferring Deposits
Is the legal maxim that “all loans which bring on profit are riba” applicable to the exchange of deposits in the event that if the two parties fail to agree to the loan exchange, it will not take place at the initiative of only one party?
Is the legal maxim that “all loans which bring on profit are riba” applicable to the exchange of deposits in the event that if the two parties fail to agree to the loan exchange, it will not take place at the initiative of only one party? The legal maxim mentioned does not apply to an exchange of deposits as no profit is realized from a loan per se; rather the same amount borrowed is returned without any increase in either cash or kind. In trade, benefits usually accrue in transactions where the parties agree to transact with one another.

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