Answer
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
In this fatwa:
Money refunded by mistake is not permissible to use for personal benefit if it belongs to someone else. In Islam, you should make reasonable efforts to return the money to its rightful owner. If returning it becomes genuinely impossible after reasonable efforts, donating it on the owner’s behalf may be appropriate according to scholarly guidance.
Responding to your question, Sheikh Ahmad Kutty, a senior lecturer and an Islamic scholar at the Islamic Institute of Toronto, Ontario, Canada, states:
You acted correctly by acknowledging that this money does not belong to you and by not spending it. In Islam, money that enters your account by mistake remains the property of its rightful owner, and your duty is to return it if possible.
In your specific situation, the bank mistakenly refunded 10,000 SAR even though the original transfer had already reached your family. Since this money belongs to the bank, it is not permissible for you to use it for your own benefit.
You have already demonstrated your honesty by repeatedly informing the bank and requesting that it reclaim the funds. If feasible, make one final, serious attempt to return the money. This could involve visiting a branch, requesting written instructions, or asking for account details to facilitate a direct return.
If, after every reasonable effort, the bank still fails to respond or there is no practical means to return the money, many scholars advise donating the full amount to charity on behalf of the bank. Your intention should be to return the owner’s money in the only way available, rather than making a personal charitable donation.
Until the money is either returned or given to charity due to the genuine impossibility of returning it, you must not use it for your personal needs.
You have already shown honesty and integrity. By pursuing one of these two options—either returning the money or, if that proves impossible, donating it to charity on behalf of its owner—you can be confident, by Allah’s permission, that you have fulfilled your responsibility.
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Almighty Allah knows best.
