Mudaraba WAQF Cash Deposit A/C

Cash Waqf is one of the latest products in the realm of the Banking Sector, particularly inIslamic Economics and Finance.
It provides a unique opportunity for making investmentin different religious, educational and social services. Savings made
from earnings for thepurpose of Waqf by the well-off and the rich people of the society can be mobilized throughthis scheme
and the income to be generated therefrom may be spent for different benevolentpurposes. Through the scheme we may
contribute to popularize the role of Waqf in hecountry including cash Waqf which can be nstrumental in transferring savings
of the rich tothe members of the public in financing various religious, educational andsocial services in Bangladesh. Cash
Waqf can work as supplement to the financingof various social investment projects.

The basic principles of the MWCDA have been designed with the approval of Shariah Council and guidelines provided by
the Law Department of the Bank as follows:

  1. Bank will conduct Waqf Management. In this respect, an independent Committee may be formed which will give
    directions/decisions to the management. A specimen of such Committee is given below:



(A respectable person having adequate knowledge of Islamic Shariah and conventional laws of the country)

To be appointed by the Board of Directors of the Bank.









To be nominated from the Waquifs



Representative of Bank's Shariah Council

Terms of reference of the Committee


To give necessary directions/decisions in the matters regarding opening & operating of Waqf account, earnings & expenses of the A/c, closing/ transferring of the account.


To give solution of any problem /question in absence of any standing direction of the Waquif.


To give decision as to controversy / contradiction, if any arises between the Bank and the Waquif.


Regarding Waqf (cash) accounts, decision of the Committee shall be final.

    1. In case of raising any complaint/ objection, by the Waquif as to the mismanagement of the Waqf fund by the Bank
    the Committee will examine and give decision. As the main deposit of cash Waqf is accepted as perpetual deposit in
    general, there is no chance of transferring the Waqf Fund. But if any controversy arises in using the income of the
    A/C, the Committee will decide the matter.
    2.  Bank may disagree in opening of any Cash Waqf A/C if there is a reasonable ground (this is valid/legal in the eye of
    the law, none can bound agreement against his consent). But if it is necessary to close any such account what will be
    done with the Waqf fund must be specified in the A/c Opening Form. Yet if any question arises, the decision taken
    by the Committee shall be final.
    • If the goal / purpose of Waqf is ended/destroyed, where the income/profit of the Waqf A/c will be spent must be
      mentioned as a special indication at the time of opening of the concerned A/c. If it is not mentioned or if there
      is a contradiction, the Committee’s decision shall be final.
    In case of any complaint/objection made by the Waquif as to the mismanagement of the Waqf, the issue may primarily
    be referred to the Waqf Management Committee for settlement. If the Committee feels it necessary, the same issue may
    be referred to the Shariah Council of the Bank for their opinion. In that case decision of the Shariah Council will be final.


    The salient features of the Scheme have been furnished hereunder:




    Mudaraba Waqf Cash Deposit Account (MWCDA).


    The MWCD Account was introduced at IBBL w.e.f. 01.07.2004.




    To provide Banking services as facilitator to create cash Waqf and to assist in the overall management of Waqf.


    To assist mobilization of social savings by creating Cash Waqf with a view to commemorating alive or deceased parents, children and to strengthen the integration of the family relationship of the well-off people and the rich.


    To increase social investment and to transform the social savings into capital.


    To make benefit of the general public, specially the poor sections of the people out of the resources of the rich.


    To create awareness among the rich regarding their social responsibilities to the society.


    To assist in developing capital market.


    To assist in overall development efforts of the country and to make a unique integration between social security and social peace.




    Waqf to be done in perpetuity and the account shall be opened in the title to be decided by the Waquif.


    Ceiling of Deposit:


    Deposits/Cash will be received as endowment on Mudaraba principle. Bank will manage the Waqf Fund on behalf of the waquif. Waquif will have the right/opportunities to create cash Waqf at a time or he/she may start with an initial deposit of Tk. 10,000.00 (Ten thousand) only and the subsequent deposit shall also be made in thousand or in multiple of thousand taka. If necessary, foreign currency may be accepted on complying with relevant rules/formalities. Cash Waqf shall be accepted in specified Endowment Receipt Voucher and a certificate for the entire amount shall be issued as and when the declared amount is built up in full.


    Profit Sharing & Weightage:


        1. The Waquif or the beneficiary under this scheme shall get the share of minimum 65% of the investment income or the percentage the Bank decides from time to time derived from the deployment of all categories of Mudaraba fund in the investment during any accounting year according to their proportion applying the highest rate of Weightage (1.35 at present stage).



        2. The Waqf amount may not remain intact as the fund is operated as per Mudaraba Principle. As per Mudaraba Principle if any loss is incurred in course of business the loss is to be realized through deduction of the Waqf deposit. To be mentioned that the profit amount only will be spent for the purpose(s) specified by the waquif. Unspent profit amount will automatically be added to Waqf amount and earn profit to grow over the time.



        3.  Profit under this scheme shall be payable to the respective sector(s) determined by the waquif on Monthly Basis/Anniversary Basis which shall have to be adjusted after declaration of final rate of profit of the bank.



        4.  Waquif may also instruct the bank to spend the entire profit amount for the purpose specified by him/her.



    Opening & Operation of the Account:


        1. Any bonafide adult citizen of Bangladesh with sound mind (capable to enter into contract) may open this account with any of the branches of IBBL through application in Bank's printed Account Opening Form designed for this purpose.



        2. Cash Waqf shall be accepted in specified Endowment Receipt Voucher and a Certificate for the entire amount shall be issued as and when the declared amount is built up in full.



        3. No Cheque Book shall be issued against this account.



        4. Waqf to be done in perpetuity and the account shall be opened in the title by the Waquif.



        5 Account of Cash Waqf will be maintained in a separate ledger and necessary bank charges shall be deducted therefrom.



        6.  The Waquif will have the right to choose the purposes to be served either from the list of choices determined by the bank for this purpose or any other purposes permitted by the Islamic Shariah.



        7.  The Waquif shall have option to maintain one or more Mudaraba Savings/Al Wadeeah Current Account at the concerned branch(es) for transfer of the profit earned on Waqf amount for utilization thereof in different sectors/purpose(s) he/she/they intend (s) to.



        8. The Waquif shall also have the right to serve standing instruction(s) to the bank for regular realization of cash Waqf at a rate specified by him/her from any other a/c maintained by him/her with IBBL.



        9.   Bank reserves the right to regret opening of any account or to close any account opened earlier without showing any reason(s) thereof.

    Special Benefits:


    Al-Hadith teaches that man's work ends upon his death except for three things, Contribution to knowledge, Ongoing charity, Believing child (Bgvb`vi mš—vb). As an instrument of Sadaqa-E-Zariah (ongoing charity) cash Waqf may play a vital role in bringing good for lives here and hereafter.

    Cash Waqf scheme offers One the opportunity to discharge his/her very responsibility towards his/her parents and also for the betterment of his/her future generations including education, marriage etc. of his/her child or grand children.

    Moreover, the benefits of cash Waqf are perpetual in nature. Unlike temporary charity, cash Waqf is well-planned and everlasting. As a result, a vast group of people in the society will avail of its benefit perpetually.

    Above all, it's the devotion of the wealth for the human and social welfare as well as having the reward from Allah, the Almighty on the day of judgment.          


    List of Purposes:


    List of purposes determined by the bank for this purpose is as follows and the Waquif will have the right to choose the purpose(s) to be served either from the list or any other purpose(s) permitted by the Shariah:


    Family Rehabilitation:

      1. Improving the conditions of absolutely poor living below the poverty line.


      2.  Rehabilitating physical handicapped and disadvantaged group of people.
      3. Rehabilitating beggars.


      4. Rehabilitation of destitute women.
      5. Up-liftmen of urban slum dwellers.


    Education & Culture:

      1. Education of orphans i.e. supplying books free of cost.
      2. Expansion and development of appropriate education for skill development.
      3. Informal education facilities for children at home (i.e. mother's educational program, children literature).
      4. Physical education and sports facilities.
      5. Supporting to Islamic culture and heritage and art promotion.
      6. Conducting Dawah activities.
      7. Supporting education of deserving students in the form of scholarship.
      8. Supporting vocational education in general.
      9. Supporting education of inaccessible and neglected area.
      10. Financing specific Madrasha, School and College of a particular area.
      11. Educating deserving dependants/descendants.
      12. Supporting any project in the area of education, research, religious and social services in the memory of father, mother and any dependants/descendants.
      13. Establishing educational chair.


    Health & Sanitation:           

      1. Village health care and sanitation.
      2. Supplying pure drinking water (to households, schools, mosques, slums, etc).
      3. Establishing hospitals, clinics, health care programs specially for the poor.
      4. Health research grants and research in particular disease.



    Social Utility Service:       

      1. Settling of disputes (i.e. Village litigation )
      2. Providing legal aid to deserving women to establish their lawful rights.
      4. Assist in arranging dowryless marriage(s) to poor girls.
      5. Maintenance of public roads and tree plantation in the villages.
      6. To rehabilitate the Converted Muslims (Naw-Muslims).
      7.  Providing assistance to peace-loving Non-Muslims and solving their problems.
      8.  Creating social awareness to prohibit gambling and other social vices such as, theft and other anti-social activities.
      9.  Construction, installation and development of public utility services.
      10.  Maintenance of a specific mosque(s) with an income generating project(s)
      11.  Maintenance of a specific graveyard with an income generating project(s).
      12.  Maintenance of a specific Eidgah(s) with an income generating project(s).

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