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Islamic Mode
of Deposit
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Mudaraba
Savings Account |
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Mudaraba is an investment contract where one party
provides the capital for investment and the other
party using skill and experience does the investment.
Here the investor/mudarib has no direct participation
in the business. On the other hand the owner of the
capital does not participate in the activities of the
business and acts only as the supplier of
cash/capital. In case of deposit Mudaraba, the
depositor, acts as the capital supplier of the
investment and the Bank acts as the investor/mudarib.
According to Mudaraba rules profit is to be divided as
per agreement and loss is solely borne by the capital
provider. In case of deposit Mudaraba the Bank as the
investor every year declares a provisional rate of
profit to be given to the depositors. Then after year
end the total investment profit is calculated and
distributed as per yearly declared ratio, which is
currently 70% (Depositor) : 30% (Bank). From the
actual portion of profit the actual rate of profit is
calculated for each Mudaraba product of the Bank. The
actual rate of profit usually differs with the
provisional rate. If the actual rate is lower than
that of the provisional rate then it is said to have
incurred loss otherwise profit is made.
The
following types of Mudaraba Savings Account are
operated in our Bank. |
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01. |
Individual/Joint Savings Account |
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02. |
Club/Society/School/College & Trustee
Account |
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03. |
Retired Army Persons Account |
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04. |
Land Owners Account |
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05. |
Tutors Account |
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Some Important features of
Mudaraba Savings
Account |
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01. |
This is a profit and loss bearing product. |
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02. |
Pattern of Depositor’s debit transactions have an
impact on profit calculation. The effects are as
following: |
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a. |
Credit transactions up to 5th day of a month are
counted towards profit calculation for that month. |
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b. |
Profit is calculated on the lowest balance of a month
starting from the 6th day to end of month. |
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c. |
If
any withdrawal amounts to 1/4th of the total balance
then no profit will be given for that month. |
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d. |
If
there are more than two withdrawal in a week than no
profit is given for that month. |
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03. |
Profit is calculated on monthly basis and credited on
half yearly basis using the provisional rate of
profit. |
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04. |
After year end the
accounts are adjusted with actual rate of profit. If
the actual profit rate is greater than that of
provisional then the extra profit is credited to the
accounts or to sundry account if any account has
closed during the year. In case the actual rate is
lower than the provisional rate the loss amount is
debited from the client’s account or notice can be
send to the client to rebate the loss amount if the
account is closed during the year. |
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05. |
After profit is being
credited to accounts income tax is deducted / debited
from the accounts. The rate of income tax is 10%. |
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06. |
Depending on the amount of
deposit there is a yearly excise duty to be charged on
this type of account. |
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07. |
There is also a specific
amount of service charge, chargeable on half-yearly
basis. |
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Rule and Conditions for
Mudaraba Savings Account |
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01. |
Client can open a Mudaraba Savings
Account by depositing at least the minimum amount specified by
the Bank. |
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02. |
Mudaraba Savings Account can be
opened by one or more person/s in the name of individual or
joint names. This account can also be opened by an educational
institution, club, association and socio-economic
organization. |
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03. |
The Client has to provide
sufficient Identification document before opening an account.
The bank would also require an introducer (a person acceptable
to the bank). |
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04. |
Deposit is taken in the account
according to the policies of Mudaraba. The Bank invests the
deposits according to Islamic Shariah. |
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05. |
Net profit earned from investment
is distributed among depositors according to Bank’s specified
rate. Currently Bank is distributing 70% of its profits
amongst depositors. |
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06. |
If any Madaraba Savings Account is
being closed before finalization of the Annual Profit & Loss
Statements, profit will be distributed according to the
provisional rate. Afterwards whatever the actual profit rate, neither the client nor the Bank will have any right to
claim. |
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07. |
If balance of a Madaraba Savings
Account drops below a certain minimum limit specified by the
Bank, no profit is credited to the account for that balance
amount. |
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08. |
Deposit in account is permissible
at any working day within the banking hours but the lowest
balance within the date range from 6th to end of month will be
calculated towards determining profit. |
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09. |
One can withdrawal at most four
times in a month and every time 1/4th of the total balance or
Tk. 15,000/-, which ever is lower, without any notice given to the
Bank. If anyone wishes to withdraw more than the above
mentioned amount then the person should notify the Bank with
seven days time. If appropriate notification is given then the
balance will be considered for profit calculation. Otherwise,
that account will not receive any profit for that month. |
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10. |
Bank will provide monthly account
statements free of charge. Additional statements may in
charges. |
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11. |
Cash withdrawal is usually done
through designated cheques supplied by the Bank. Here all the
regulations of Negotiable Instrument Act will be applicable. |
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12. |
Initially the Client has to apply
for cheque Book in a separate form. From next time on Client
has to apply using the application form attached to the cheque
book. |
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13. |
The Client should count the leaves
of a cheque book will taking it from the Bank. The safety of
the cheque book is the sole responsibility the Client. For any
fraud or forgery using lost cheque book or leaf, the Bank can
not be held accountable. |
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14. |
The Client has to sign cheques
according to the signature card kept with the Bank. If the
Client wishes to change his/her specimen signature, s/he has
to inform the Bank before hand. |
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15. |
The Client has to deposit using
Bank’s specified deposit slip. In the deposit slip the Client
has to mention his/her account no, account name, deposit
amount and particulars of the deposit. The Client can deposit
in cash or cheque. If cheque is deposited then it has to be
marked as account payee. |
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16. |
Stop payment of cheque is taken
under notification with proper caution and attention but if
payment is made by mistake then the Bank cannot be held
responsible. |
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17. |
The account holder can close the
account any time with proper application and returning the
unused cheques. |
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18. |
Bank reserve the right to close
any account without showing any cause. Specially those accounts
which are non-profitable or dormant for a long time with
little deposit. Bank can take those deposits to its income
after closing the accounts. |
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19. |
The Client has to inform the Bank
of any address change immediately. Bank from time to time will
communicate with the Client through mail. Bank cannot be
held responsible if mail does not reach the Client in time or
not at all received by the Client. |
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20. |
The Bank does debt/credit to an
account with full and proper caution. If by mistake the Bank
fails to credit any amount, will do so any time later. On the
other hand, if any amount is being credited by mistake the
Bank cannot be held responsible for the any loss of the Client
for such incident. |
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21. |
Bank reserve the right to change,
append or amend any rules or regulations from time to time and
those will be applicable to the clients. |
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The following table contains the
actual profit rate of previous year and the provisional rate
of current year for Madaraba Savings Account: |
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Final Profit Rate of 2005 |
Provisional Rate of 2007 |
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6.25% |
6.00% |
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