Deposit Schemes

A savings account with no minimum balance requirement and monthly or quarterly profit payment

Name of the product Asan Modarba
Underlying Islamic mode PLS Deposit on Modarba basis
Type of product Saving
Minimum balance requirement, if any No minimum balance
Profit calculation Daily closing balance
Periodicity of Profit distribution Monthly/Quarterly profit payment

 

Mudarabah 

Deifinition of Mudarabah 

“Mudarabah” is a kind of partnership where one partner gives money to another for investing in profitable avenues. The investor (fund supplier) is called “Rabb-ul-Mal” while the person who utilizes this fund (the fund manager) is called “Mudarib” who is exclusively responsible for management of the business.

Legitimacy of Mudarabah 

The Muslim jurists have reached Ijma’ among them upon conducting Ijtihadon the permissibility of the Mudarabah contract. It has also been established that the companions of the Prophet Muhammad (SAW) such as Umar, Uthman, Ali, Abdullah Ibn Mas`ud, Abdullah Ibn Umar, Ubaydullah Ibn Umar and A`ishah have placed the property of orphans under the Mudarabah contract with no objections from other companions.

The Modern Application of Mudarabah in NRSP

Relationship with depositors:

All investment accountholders of the bank provide moneys to bank as Rabb-ul-Mal to be invested by the bank as Mudarib on the basis of profit and loss sharing on pre agreed specific ratio.

A savings account with no minimum balance requirement and profit payment at six months

Name of the product Kisan Modarba
Underlying Islamic mode PLS Deposit on Modarba basis
Acceptable currency PKR
Type of product Saving
Minimum balance requirement, if any No minimum balance
Profit calculation Daily closing balance
Target Customers PLS Account holders
Periodicity of Profit distribution Half-yearly profit payment
Service charges leviable, if any As per Schedule of Service Charges
Other salient features/services Nil
Launch date of the product/strong> With the approval of SBP

 

Mudarabah

Deifinition of Mudarabah

“Mudarabah” is a kind of partnership where one partner gives money to another for investing in profitable avenues. The investor (fund supplier) is called “Rabb-ul-Mal” while the person who utilizes this fund (the fund manager) is called “Mudarib” who is exclusively responsible for management of the business.

Legitimacy of Mudarabah

The Muslim jurists have reached Ijma’ among them upon conducting Ijtihadon the permissibility of the Mudarabah contract. It has also been established that the companions of the Prophet Muhammad (SAW) such as Umar, Uthman, Ali, Abdullah Ibn Mas`ud, Abdullah Ibn Umar, Ubaydullah Ibn Umar and A`ishah have placed the property of orphans under the Mudarabah contract with no objections from other companions.

The Modern Application of Mudarabah in NRSP

Relationship with depositors:

All investment accountholders of the bank provide moneys to bank as Rabb-ul-Mal to be invested by the bank as Mudarib on the basis of profit and loss sharing on pre agreed specific ratio.

A current account with no minimum balance requirement operating under the Qarz – e – Hasna basis

Name of the product NRSP Current Account
Underlying Islamic mode Current Deposit on Qarz-E-Hasna basis
Type of product (Saving/Current/ Term/ Others) Current
Minimum balance requirement, if any No minimum balance
Target Customers Current Account holders

A term deposit with 1 month to 5 years tenor with a profit distribution according to the condition of the Islamic certificate

Name of the product NRSP Islamic Certificate
Underlying Islamic mode PLS Deposit on Modarba basis
Type of product Term
Tenors (minimum and maximum) 1-month to 5-year
Profit calculation Daily closing balance
Periodicity of Profit distribution As per terms and conditions of the Islamic Certificate
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