Deposit, With-drawl, (Chapter Two)

Deposit: In conventional Bank, deposit is the loan taken from public and they can use the loan anyway, so the relationship is debtor and creditor.

In Islmaic Bank, deposit is Amanah. here banks take deposit in two ways, one is Al-Wadiah and the other is Mudaraba. As per al Wadiah, relationship between bank and depositor is trustee and trust giver. In Mudarabam, it is partnership. the depositor is Sahib Al mal and bank is Mudarib( Entrepreneur)

Different types of deposits: 

1. Demand deposit: the Amanat that bank is committed to pay bank on demand and cheque book was not issued there against is called demand deposit, such as Al wadiah current account and general savings account.
2. Time deposit: The deposit that is payable on specific maturity and no cheque book is issued against them is called time deposit, such as term deposit and bonds 
3. Call deposit or call money: Banks borrow money for short period is called call deposit.
4. Cost free deposit: The deposit for which banks do not give any profit is called cost free deposit. eg Current account, Pay order, DD payable, sundry deposit etc.
5. High Cost bearing deposit: Deposits for which banks pay high rate of profit is called high cost bearing deposit. eg- time and term deposit, bonds.

        

Daily product: 4 in number Mudaraba Farmers Savings Account, MSA ( Staff), Mudaraba Special Notice Account (MSNA)  Hajj Savings account

Common Account Opening Documents

1)       Complete account opening form

2)       02 Copies passport size photographs of every operators duly attested by introducer

3)       Identification proof like National ID Card/Passport/Chairman certificate

4)       1 copy photograph of nominee duly attested by the account

5)       Minimum deposit

Special Insturctions: Anyone can operate the account, close the account, anyone or survivor can operate the account continue the account like his own.

3 TYPES OF KYC are filled up , personal, firm or company, non business organization.

Who can open account?

Anyone eligible for contract can open account. but care should be taken for below accouts:

Minor Account: as Minor can not can not enter into contract, he can not open account, but any guardian in the name of minor or jointly can open account. in this case, minor can be adult in the age of 21.

Account in the name of Bankrupt: No account should be opened in the name of bankrupt, because the money may be before declaration of bankrupt.

Joint Account:

In case of joint account, all will sign in the account opening form. Clear indication will have to be taken who may operate the account. 

Account of proprietorship account: Signatory in the form must sign with his seal and position in the firm.

Partnership Account: Company has legal entity but in partnership firm has no such legal entity . here partners are the main entity and act as representative of the firm. if the maturity of the firm expires, or death of any partner, addition of substraction of new members, all power given to bank earlier will be void. bank will stop transaction of the account.

Limited Company Account: Additional Documents: Memorandum and articles of Association, resolution of board of directors for opening accounts with the banks.

Accounts of Non business organisation: Club, societies, religious organization if registered under company Act of 1913, it would be regarded as a company or if it is registered under Registration Act of 1860,  then it is a society or organisation. It is not legally bound to register to under any act to open a bank account. Care must be taken to open such account. Banks must take resolution of the somity, articles of Association. person authorised to operate account must sign his name and his due power.

Account of Cooperative Society: the society must be registered Somobai Somiti Act 1940. Registration certificate,   constitution, resolution of managing committee. Account operator will sign citing his designation in Society.

Trust Account: Trust deed and duties and responsibilities of trustees as per trust. In case of trustee dies, others can operate the account if no instruction is written in deed. Combined signed of all trustees are needed.

Illiterate Account: Only savings, proper introduction, Illiterate account in SS card inscribed, no issuance of cheque book, thumb impression on open cheque to withdraw money before bank official etc are needed.

Account of Executors and administrator : done by power of attorney within his power. He must sign with PP( Per Procuration/ Power of attorney).