Distribution of Profit in Mudarabah-Based Investment Accounts - Appendix C (Definitions)

Transcription

1. Shari ’ah Standard No. (40): Distribution of Profit in Mudarabah-Based Investment Accounts Appendix (C) Definitions Deposit (Wadi’ah) Funds given to someone for safekeeping Bank Deposit Funds which individuals and institutions entrust the bank to keep, provided that the bank assumes the commitment to repay such funds or their equivalent to depositors or any other specific person, on demand or subject to the conditions agreed upon. Demand Deposit (Current Deposit) Demand deposit is the means whereby a current account is established. The current account can be defined as: The funds deposited by their owners with the bank so as to be ready for withdrawal on need. The bank assumes the responsibility of immediate repayment of such funds on demand, and without any type of prior notification. Savings Deposit (Savings Account) Small cash deposits which individuals cut from their incomes and pay to the bank so as to open saving accounts for them. The owners of such accounts have the right to withdraw the whole or part of the balances of their accounts at any time. 1012