Daman al-naqs

Definition of "Daman al-naqs"

Lit: Liability for making up any loss. Tech: It relates, generally, to contract for demand deposits in Islamic banking. The Islamic bank is liable to make up any deficiency in the demand deposits. But in case of investment deposits as well, the bank is liable to make up the loss in case the loss occurs due to violation of terms of the agreement or negligence by the bank.