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Principles of Deposit:
Jamuna Bank PLC. offers deposit products to its customers following 02(two) principles:
Al-Wadiah Principle is a type principle where the bank holds the deposit on behalf of the customer, like a safekeeping arrangement. In this case, the bank is obligated to return the full amount of the deposit to the customer upon request. No profits are shared to the Al-Wadiah Current Account holders against their Deposit as per basic rule of “No Risk No gain”.
Mudaraba is a partnership of labour and capital, where one partner provides full capital and the other one manages the business. The capital provider is called “Sahib-Al-Maal” and the user of the capital is called “Mudarib”. As per Shari’ah principles, the Mudarib will conduct the business independently following Shari’ah principles. The Sahib-Al-Maal may provide advices, if he deems fit but he cannot impose any decision over the Mudarib. Profit, if any, is divisible between the Sahib-Al-Maal and the Mudarib at a predetermined ratio, while loss, if any, is borne by the Sahib-Al-Maal. Mudarib can not avail of any salary or remuneration against his labor as a manager or conductor of the enterprise/business. The deposits, received by Islami Banking Branches under this principle are called Mudaraba Deposits.
- i. Al-Wadiah Principle
- ii. Mudaraba Principle
Al-Wadiah Principle:
Al-Wadiah Principle is a type principle where the bank holds the deposit on behalf of the customer, like a safekeeping arrangement. In this case, the bank is obligated to return the full amount of the deposit to the customer upon request. No profits are shared to the Al-Wadiah Current Account holders against their Deposit as per basic rule of “No Risk No gain”.
Al-Wadiah Principle:
Mudaraba is a partnership of labour and capital, where one partner provides full capital and the other one manages the business. The capital provider is called “Sahib-Al-Maal” and the user of the capital is called “Mudarib”. As per Shari’ah principles, the Mudarib will conduct the business independently following Shari’ah principles. The Sahib-Al-Maal may provide advices, if he deems fit but he cannot impose any decision over the Mudarib. Profit, if any, is divisible between the Sahib-Al-Maal and the Mudarib at a predetermined ratio, while loss, if any, is borne by the Sahib-Al-Maal. Mudarib can not avail of any salary or remuneration against his labor as a manager or conductor of the enterprise/business. The deposits, received by Islami Banking Branches under this principle are called Mudaraba Deposits.