Mufti Muhammad Ashraf Saheb of South Africa responds to the question: Is it permissible to repay interest with interest?

Fatwa, posted 4.22.2010, from South Africa, in:
Religious Authority: 
Mufti Muhammad Ashraf
Fatwa Question or Essay Title: 
Mufti Muhammad Ashraf Saheb of South Africa responds to the question:Is it permissible to repay interest with interest?

It will be permissible to repay interest with interest if it is carried out in the same bank, i.e. so long as the interest is repaid to the same bank that paid out the interest and so long as the deal is settled through adjusting documents (on paper) and not by the payer physically attaining the interest and then repaying it. However, one should repent from indulging in such transactions, although he will not be as sinful as physically receiving and repaying interest.