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|
|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|
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.