Mudaraba means an arrangement in which a party participates in a venture as provider of fund and another as a Fund Manager. In Mudaraba accounts the party providing the fund (i.e. the depositor) shall be termed as Rab-al-Mal / Saheb-al- Mal (Owner of the fund) and the Bank will be the Mudarib (Manager/ Organizer of the fund). The Bank is authorized to invest the Mudaraba fund in Shariah complient mode at the risk of the depositor (Rab-al-Mal) Distributable income (means Distributable Investment Income after netting off Provision for Mudaraba Depositors Profit Equalization at prescribed rate and provision for special mention & classified investment accounts and/or other regulatory requirement) resulting from deployment / investment of the Mudaraba fund will be distributed between the Bank and the depositor as per respective agreed ratio with different types of Mudaraba depositors. Loss incurred, if any, is to be borne by the Owner of the fund, i.e. the Depositor.

Mudaraba savings account is opened under the Mudaraba principal of Islami Shariah, where the clients are the Shaheb-Al Mal (owner) and the Bank is Mudarib. Mudaraba Savings accounts are mainly meant for Non-Trading customers who have some potential saving with small number of transactions taking place. More than one person can open and operate a Mudaraba savings account. A guardian on behalf of a minor can open a Mudaraba Savings Account.

Eligibility for opening the account

Mudaraba Savings Accounts (MSA) has been designed and developed for individual savers and thus not suitable for business concerns as there are restrictions on withdrawal both amount and frequency. Savings Account may be opened in the name of:

• Person (Single).
• Two or more individuals (joint) who are not partners.
• Minor jointly with Natural / Legal Guardian.
• Clubs / Societies / Associations or Similar Institutions / non-profit organizations.

Features of Mudaraba Savings Account

• Free Cheque Book (1st time only) and free online banking service all over the country along with ATM card service.
• According to mudaraba rules profit is to be divided as per pre-agreed ratio and loss is solely borne by the capital provider.
• In case of deposit mudaraba the bank as the Mudarib, every year declares a provisional rate of profit to be given to the depositor. This will be adjusted with the actual profit worked out on year ending. If the actual rate is lower than that of the provisional rate then it is said to have incurred loss otherwise profit is made.
• Bank statement/ balance confirmation certificate is generally issued twice (half yearly and yearly) in a year without any cost. Account statement is also provided to clients demand on realization of specified charges.
• Charges/Govt. levy/Tax/VAT is to be realized from the account as per government/Head Office instruction.
• Initial Deposit for MSA in Urban Areas is BDT 1,000.00 (one thousand) and in Rural Areas BDT 500.00 (five hundred) or fixed by the Bank from time to time.
• The account holder in any time can close the operation of his account after surrendering his cheque book & submitting the application duly signed on realization of closing charge.
• Profit in Mudaraba Savings Bank A/C shall be calculated and accrued monthly and credited to the account half-yearly in June and December of each year.

Provisional Profit Rate

The total profit is calculated and distributed as per yearly declared ratio, which is currently 65% (Depositor): 35% (Bank). The bank as the Mudarib, every year declares a provisional rate of profit to be given to the depositor, which will be adjusted with the actual profit work out on year ending.

Other Rules & Conditions

• Mudaraba Savings A/C holder may be introduced by a running CD / SND / SB Account holder with sufficient balance in their accounts and satisfactory transaction in the accounts.
• Bank Officials may also introduce MS Account holder (s) mentioning their Power of Attorney number (PA) provided they know the person well.
• Prescribed Incidental charge is to be realized every half year if the balance comes down the required minimum balance. A penalty is also charged to the customer at the discretion of the Manager, each time a cheque is returned unpaid for want of funds in the account.
• The bank reserves the right to close any Mudaraba Savings account with prior notice.
• A person is not allowed to open more than one account in his / her name which is not applicable in case of joint account or as guardian in case of Minor (s) account. Cash, Cheques draft, payment orders, dividend warrants, refund warrants etc. can be deposited in this account.
• Bank may accept standing instruction on Mudaraba Savings account
• Account Charges, Govt. levy as may be prescribed by Head Office time to time is to be realized.
• No provisional profit in Mudaraba Savings Account is payable if amount of balance in the account falls below BDT 10,000.00 (Ten thousand) on or after 5th day of the month.

Mudaraba Savings Account Provisional Profit Rate