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Savings
play an important role in capital formation, income-generation and creation of employment opportunities and contribute towards the increase in wealth of the
individual and nation through profitable investment.
The
people generally try to save a portion of their income with a view to protecting
themselves from future financial hardship and also to enhance their earnings for
their own benefit and the benefit of their family and the nation as a whole.
Bangladeshi wage earners living abroad and the retired service holders desire to
invest their earnings and retirement benefits in safe and profitable investment
schemes. Many a people, however, cannot deploy their fund in business for
various reasons. The people of Bangladesh are deeply religious and committed to
Islamic way of life and determined to conduct their economic activities in
accordance with the tenets of Islamic Shariah. Naturally they want to avoid
interest in transaction and business which is forbidden by Islam.
Islam
encourages savings, which is the prerequisite for any sustainable economic
development. The saying of Holy Prophet (PBUH) is that poverty leads to unbelief
and therefore, people have been encouraged to save a portion of their earnings
to protect themselves from future financial setback. Islam emphasises in the
cycling of surplus capital by investing such funds in productive economic
activities that will pave the way for employment, development and progress.
The
people of Bangladesh reluctantly invest in interest bearing schemes. The
religious Muslims, however, avoid such investments and the idle funds are mostly
being consumed to meet the avoidable family demands. Thus the major portion of
savings remain out of the production process. Islami Bank Bangladesh Limited,
has therefore, introduced the savings deposit accounts viz. Mudaraba Savings
Account, Mudaraba Term Deposit Account, Mudaraba Hajj Savings Account, Mudaraba
Special Notice Account and Mudaraba Special Savings (Pension) Scheme as per
Islamic Shariah. Mudarabah Special Savings (Pension) Account has also been
introduced recently. Islami Bank Bangladesh Limited, being encouraged by the
success of the Mudaraba deposit accounts has, therefore, introduced yet another
savings scheme namely "Mudaraba
Savings Bond Scheme".
Objectives
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To offer investment opportunity to the people and institutions who do
not like to keep their savings and funds in interest bearing deposit accounts or
invest in interest bearing schemes.
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To facilitate deposit and investment of funds of the wage earners and
retirement benefits of the service holders.
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To encourage savings by offering a safe and profitable investment outlet
through sharing of a portion of the profit out of investment of their deposited
money as per Islamic Shariah.
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To extend the Bank's Schemes for mobilisation of savings, generation of
income, creation of employment and enhancement of wealth of the individual and
the nation through profitable investment of these savings as per Islamic Shariah.
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To encourage participation of the people in Islamic banking system and
development of the economy in line with the principle of Islamic Shariah.
Eligibility
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Person(s) aged 18 years and above shall be eligible to purchase Mudaraba
Savings Bond(s) in single name or in joint names.
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Educational Institutions, Clubs, Associations and other non-trading and
non-profit Socio-economic Institutions shall also be eligible to purchase Bond(s)
in the name of the Institutions.
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Guardian(s) shall be allowed to purchase Bond(s) jointly with a minor
mentioning the age of the minor. Payment against such Bond(s) shall be made on
the basis of joint signature after the minor attains majority.
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Father/Mother/Legal Guardian shall be eligible to purchase these Bonds
on behalf of one or two minors mentioning the name and age of the minor(s) and
also instructions regarding payment encashment.
Denomination
Mudaraba
Savings Bond shall be available in Tk. 1,000.00, Tk. 5,000.00, Tk. 10,000.00, Tk.
25,000.00, Tk. 50,000.00, Tk. 1,00,000.00, Tk. 5,00,000.00 and Tk. 10,00,000.00
denominations.
Purchase Ceiling
Purchase ceiling of Mudaraba
Savings Bond is minimum Tk. 1,000.00. Any amount of Bonds can be purchased
subject to availability.
Purchase Procedure
Eligible purchaser(s) shall
be entitled to purchase Mudaraba Savings Bonds in single or in joint names or in
the name of Institutions from the Branch of the Bank. The purchaser(s) shall
have to apply in prescribed form of the Bank and fulfil the terms and conditions
in this respect.
Period of Maturity
5 (five) years
8 (eight) years.
Profit Sharing & Weightage
The Bondholders shall share income derived from investment i.e. income from the
use of the funds in economic activities permitted by Islamic Shariah. This
includes profit, dividend, capital gains, rent and any other income derived from
investment
Bondholders shall get minimum 65% of the income derived from the deployment of
Mudaraba fund in the investment during any accounting year according to their
proportion in the total investment applying the following weightages:
Type of Bonds Weightage
8 years Mudaraba Savings Bond : 1.25
5 years Mudaraba Savings Bond : 1.10
Benefits of full weightage shall
be given if encashed on maturity. In cases of premature encashment weightage
shall be relatively lower as below:
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Period
of Encashment
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Weightage
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5
years Bond
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8
years Bond
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Encashment within 01 year
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00.00
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00.00
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Encashment after 01 year but
within 02 years
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00.80
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00.80
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Encashment after 02 years but
within 03 years
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00.85
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00.85
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Encashment after 03 years but
within 04 years
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00.90
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00.90
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Encashment after 04 years but
within 05 years
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1.00
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1.00
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Encashment after 05 years but
within 06 years
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1.10
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1.10
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Encashment after 06 years but
within 07 years
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-
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1.15
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Encashment after 07 years but
within 08 years
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-
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1.20
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Encashment after 08 years
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-
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1.25
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Encashment
For encashment of Mudaraba
Savings Bonds, the Bondholder(s) or their nominee(s) [in case of death of the
purchaser(s)] shall have to present the Bond(s) and the related papers in
original duly discharged as per rules, to the Branch of the Bank where from the
Bonds were purchased. The concerned Branch shall verify the signatures and other
particulars and if found in order, then make payment with profit to be
calculated on the basis of period covered at the time of encashment.
Other Benefits
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Mudaraba Savings Bonds can be purchased in single
name or joint names and there shall be provisions for nominating nominee(s).
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Photographs shall not be required with application
for purchase of the Bonds.
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Mudaraba Savings Bond shall be acceptable as
security.
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If original Bonds are lost or damaged due to
theft, fire etc. there shall be arrangement for issuance of duplicate Bonds
after due verification.
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Mudaraba Savings Bond holders alongwith other
Mudaraba depositors shall get preference in the matter of investment of their
deposits over the Bank's equity and other cost free funds.
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Income derived from the investments during the
accounting year shall at first be allocated to the Mudaraba deposits and cost
free funds (including Bank's equity) according to their proportion in the total
investment as per principles of distribution of profit to Mudaraba depositors.
Other
Terms & Conditions
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Deposits against Mudaraba Savings Bond shall be
accepted strictly on Mudaraba principles of Islamic Shariah and accordingly the
deposits so received shall also be invested as per Islamic Shariah.
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The depositors must preserve the Bonds properly
and carefully. In case of loss or damage of the Bonds, the depositors must
inform the Bank immediately for taking necessary precautions. If the depositors
fail to inform the Bank about the loss, the Bank shall not be responsible for
any withdrawal of money against the Bonds through fraudulent means.
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Nomination can be cancelled at any time and the
depositors can nominate new nominee. Nomination shall be cancelled automatically
if the nominee dies before maturity of the Bonds. Nominee shall be entitled to
the benefits only after the death of the depositors. Mudaraba Savings Bonds
purchased in joint names shall be encashed under joint signatures if there is no
instructions, the legal heirs of any joint depositors shall get their share as
per law in case of death of any of the joint depositors.
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Mudaraba Savings Bond holders shall not share any
income derived from different services of the Bank where the use of fund is not
involved. Similarly, the Bondholders shall also not share any income derived
from the investment of Bank's equity and cost-free fund.
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Profits of any accounting year shall be declared
after certifying the accounts of the Bank by the auditors appointed by the
shareholders in the Annual General Meeting.
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If the Bonds are encashed before finalisation of
the annual accounts of the Bank, profits shall be paid on the basis of
provisional rate. Afterwards if it is found on finalisation of accounts that the
profits are more or less than the provisional rate, neither the Bank nor the
concerned depositors shall have any claim.
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Profits shall be calculated on the basis of
weightage pertaining to the particular Bond.
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No profit shall be paid if any Mudaraba Savings
Bond is encashed before expiry of one year. If any Bond is encashed after one
year but before the maturity date, profit shall be paid at reduced rates
applicable to the period covered.
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No profit shall be paid for the period after
maturity of the Bond, if not encashed on maturity.
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The Bondholders shall have to communicate to the
Bank, if there is any change of their address.
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The Bank reserves the right to change, amend,
modify or cancel any rules, terms and conditions of the scheme.
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