CASH WAQF DEPOSIT SCHEEME:

SOCIAL ISLAMI BANK LIMITED (SIBL) EXPERIENCE

Meaning of Waqf

Waqf is an Arabic word derived from the root verb Waqafa. Awqaf is the plural of Waqf. Ahmed

(1998) asserted that there is no equivalent word or expression in English to convey the Islamic

concept and meaning of Waqf in the true sense of the term. So it’s good to use the word Waqf in

its Arabic form instead of attempting to give a precise translation.

Meaning of Waqf can be expressed in different points of view such as

Linguistic point of view : Waqf means forbidding movement, transport or exchange of

something (Raissouni, 2001, p. 13)

Literal meaning in the Arabic language: Waqf means ‘confinement or prohibition’.

(Bewley2001, p.62)

In Legal Usage: Waqf means the non-negotiability of property ownership which is of

employable value, and the direction of its benefits to a certain charitable purpose, once

and for all. (Bewley2001, p.62)

Shari’ah point of view: Waqf may be defined as holding a Maal (an asset) and

preventing its consumption for the purpose of repeatedly extracting its usufruct for the

benefit of an objective representing righteousness and/or philanthropy. (Kahf 1998, p. 4)

According to Ibn Qudama: Waqf means bequeathing the property and dedicating the

fruit. (Raissouni 2001, p. 14)

Defining Waqf

Some of the important definitions are cited below:

Appropriation or tying up a property in perpetuity for specific purposes. No property

rights can be exercised over the corpus. Only the usufruct is applied towards the

objectives (usually charitable) of the waqf. (Obaidullah and Khan, 2008)

According to Dr. Monzer Kahf, “Waqf is a continuously usufruct-giving asset as long as

its principal is preserved. Preservation of principal may result from its own nature - as in

land - or from arrangements and conditions prescribed by the Waqf founder.”

Ibn Abdelbar defines, ““It’s when an owner gives benefactorily whatever he likes from

his revenue, fruits, crops or real estate so that the yield, tax and benefits thereof follow

the course he schemed willingly. That is one way of seeking God’s favor. Legal claim is

in this case mortmain and meant neither to be sold nor granted and never inherited no

matter how much remains thereof.”

In the context of the census report of Waqf Estates 1986, Waqf Estate has been defined as

land or other immovable property ( a part or whole) donated by a person or a group of

persons or an organization for any social, religious or state activity without having any

return.

Distinct features of Waqf

As a special kind of benevolence Waqf has the following two characteristics:

I. Perpetuity

It means that once a property, often a real estate, is decided as Waqf it remains Waqf forever.

Elimination of the Waqf character of a property requires difficult and lengthy process. It requires

a process of exchanging the Waqf property for another property of equivalent value with

approval of a local court. Upon completion of such an exchange the new property must be

dedicated to a Waqf for the same purpose and beneficiaries of the former property. Theoretically

at least, perpetuity implies that Waqf properties should not decrease.

II. Performance of Stipulations of the Waqf Founder

Since Waqf is a voluntary act of benevolence, conditions specified by the founder must be

fulfilled to their letter and spirit as long as they don’t contradict or violate any of the Shariah

rulings. This implies that revenues of Waqf should exclusively be used for the purposes as

mentioned by the founders. Furthermore, the conditions of the founders may not be changed by

management or supervisory court as long as they are still feasible to execute. If a Waqf purpose

becomes infeasible, the revenue of this Waqf should be spent on a closest purpose available and

if not it goes to the poor and needy. Performance covers all the founder’s stipulations whether

they relate to purpose, distributions of revenues, management, supervisory authority, etc.

As an Islamic charity the instrument of waqf differs from Zakah and other charity instrument

such as Sadaqah, Fitrah, and Lillah etc. Following table shows the comparison of Islamic charity

instruments.

Table 2: The comparison of Islamic charity instruments

Factors Waqf Zakah Lillah

Nature Voluntary Compulsory Voluntary

Rate Any amount Fixed rate Any amount

Expense categories Flexible expense

categories. Donor

can decide

8 Fixed expense

categories as

approved by

shariah

Flexible expense

categories. Donor

can decide.

Spend Generally

Capitalized

Generally spent

with one year

Generally spent

within one year

Investments Invested in social or Generally not Generally not

economic asset invested – needs to

be discharged as

soon as possible

invested – may be

discharged

according to need

and mandate

Shariah

governance:

Liability

Donor must be

sane, of age, male

or female

Liability for

payment is

governed by

Shariah

Any person can

give

Mutawallee Must appoint

Mutawallee

(trustee)

Mutawallee not

necessary

Mutawallee not

necessary

Document No document

necessary

No document

necessary

No document

necessary

Sadaqah Jariyyah Always a

continuous charity

and continuous

reward

Generally not

continuous

Generally not

continuous

Capital base Forms a Capital

Base for

Sustainable

Community

Development

Not a capital base Not a capital base

Beneficiaries May be applied to

all irrespective of

creed.

Applied only to

Muslims.

May be applied to

all irrespective of

creed.

Time for payment Can be paid at any

time

Generally paid in

Ramadan

Can be paid at any

time

How payment is

effected

Can take the form

of any asset – cash,

land, coins,

jewellery

Generally paid in

cash or stocks

Can take the form

of any asset

Source: M Kabir Hassan (2008)

Legitimacy of Waqf

All schools of fiqh Hanafi, Maliki, Shafeyi & Hanbali agreed upon immovable and movable

properties as a subject matter of waqf.

Evidence from the Al-Qur’an:

(a) “By no means shall ye attain righteousness unless ye give (freely) of that which ye love; and

whatever ye give, of a truth God knoweth it well (Al-Qur’an-3:92)

(b) “It is not righteousness that ye turn your faces towards East or West, but it is righteousness to

believe in Allah, and the Last Day, and the Angels, and the Book, and the Messengers, to spend

of your substance out of love for Him, for your kin, for orphans, for the needy, for the wayfarer,

for those who ask, and for the ransom of slaves, to be steadfast in prayer and practise regular

charity.”(Al-Qur’an-2:177)

Evidence from the Sunnah

(a) “Abu Hurairah (Allah be pleased with him) reported Allah’s Messenger (pbuh) as saying:

when a man dies, his acts comes to an end, except three things, recurring charity, or knowledge

(by which people benefit), or pious offspring, who prays for him. (Sahih Muslim)

Majority of Muslim jurists understood that recurring charity serves as the basis of waqf.

Kinds of Waqf

Eminent Islamic economist Monzer Kahf has shown three kinds of Waqf such as:

1. Religious Waqf: Mosques and real estate confined for providing revenues to spend on

mosques’ maintenance and running expenses are in the category of Religious Waqf.

Religious Waqf, in any society and for any religion, adds to the social welfare of any

community because it helps satisfy the religious needs of people and reduces the direct

cost of providing religious services for any future generation.

2. Philanthropic Waqf: It aims at supporting the poor segment of the society and all

activities that are of interest to people at large such as public utilities for the poor and

needy, libraries, scientific research, education, health services, care of animals and

environment, lending to small businessmen, parks, roads, bridges, dams etc.

3. Posterity or Family Waqf: It started shortly after the death of Prophet, pbuh, during the

reign of Umar (635-645), the second caliph. In this case, the revenues of Waqf must first

be given to their own children and descendants of the waqf founder and only the surplus,

if any, should be given to the poor.

New Dimensions of Waqf

It is very interesting to note that lately some new types of Waqf are making their appearances.

These are Cash Waqf and Waqf of intellectual property.

Cash Waqf

Previously, waqf of building and land were the most popular forms of waqf. Nowadays, cash

waqf has become increasingly well-known, particularly because of its flexibility, which allows

distribution of the waqf’s potential benefit to be benefited by the poor anywhere. Cash waqf was

first introduced in Ottoman era in Egypt. Professor Mannan then socialized cash waqf in

Bangladesh through Social Investment Bank Limited, now Social Islami Bank Ltd. (SIBL). SIBL

issues Cash Waqf Certificate to collect funds from the rich and distributes incomes of the funds

to the poor.

In the recent past, some well-to-do persons pooled their funds to jointly create Cash Waqf to

establish a number of private universities in the wake of the enactment of the Private University

Act, 1992 (Sadeq, 2000). Among others there is one organization which is partially created by

Cash Waqf, namely, the Social Science Institute (SSI). It has three funds. First, an endowment

fund which is a Cash Waqf. The whole money is kept in the investment fund of an Islamic bank,

which operates on the basis of mudarabah. The profits are spent for fulfilling some Islamic

objectives laid down in the constitution of SSI. Secondly, the general fund, the profit of which is

used to meet the operational cost of SSI activities. Thirdly, a poor-fund consisting of Zakah is

paid by SSI which is used to help the poor, especially poor students. In this way Cash Waqfs

have added a new dimension to the activities of charity in Bangladesh. (Sadeq, 2000)

Waqf of Intellectual Property

Another very interesting development in the area of Waqf in Bangladesh is the creation of Waqf

of Intellectual Property, consisting of copyright of Books. There are at least two such waqfs in

the country.

1. The Khairun Prokashani Trust, and

2. The Deeni Publications Trust.

The Khairun Prokashani Trust is a waqf created by Maulana Abdur Rahim, a renowned Islamic

scholar of Bangladesh, with the copyright of his books with his wife and children as

beneficiaries. The Waqf has a printing press and a building of its own in Dhaka.

The Deeni Publication Waqf is another waqf of Intellectual Property, established by another

renowned Islamic scholar, Maulana Muhammad Abdul Khaleq, making waqf of copyright of all

his books.

Cash Waqf: A Textual Analysis Of The Views Of The Muslim Scholars

Understanding cash waqf is essential in the present context in order to protect the human dignity

through alleviating the poverty from Islamic perspective. The verse 2:185 of the Qur`an

commands that Allah (swt) intends every facility for you, He does not want to put you in

difficulties. Resources gifted by Allah to man belong to Him but a trust given by their God,

Allah. Human beings are allowed to utilize and protect them, which are the divine order, let not

to misuse or destroy. Cash Waqf according to religion is a means for alleviating poverty, which

cause justice and peace against injustice and social ills. In Islam, Allah encourages Muslims and

advises to give charity out of what Allah provided for them secretly and openly. The Qur`an

declares: “Spend in charity out of what We have provided for them, secretly and openly, hope for

a sure trade-gain that will never perish. That He may pay them their wages in full, and give them

even more out of His Grace. Verily, He is Oft-Forgiving, Most ready to appreciate good deeds

and to recompense”.(35:29-30) it also emphasizes to give charity secretly to the poor rather than

openly because that is better for them and Allah will forgive them as mentioned in this verse: “If

you disclose your charity, it is well, but if you conceal it, and give it to the poor, that is better for

you and Allah will forgive you some of your sins”.(2:271) Islam makes all resources as sacred

and hallowed and condemns not to waste it, destroy and misuse it because wastage is a great sin

in Islam as the Qur`an says: “Verily, spendthrifts are brothers of devils and devil is ever

ungrateful to his lord”. (17:26) No matter how much Muslims waste as being done against the

divine order, they must safeguard and protect the Allah-gifted wealth and blessing for the benefit

of the entire humanity. They must have faith in Allah and spend their properties as He wishes,

not as their desire wants. In another verse, “And let not your hand be tied like a miser to your

neck, nor stretch it forth to its utmost reach like a spendthrift, so that you become blameworthy

and in severe poverty”. (17:29) Allah warns Muslims to give charity before their death because

after death wealth will not help them as the Qur`an admonishes: “And spend in charity of that

with which We have provided you, before death comes to one of you and he says: “My Lord! If

you only would give respite for a little while, then I should give charity of my wealth and be

among the righteous”.(63:10)

Prophet of Islam often motivated and warned Muslims to give more and more charity, which

would help them in getting the blessing of their Creator. A hadith narrated by Abu Hurairah,

Prophet of Islam said: “When man dies, his deeds cease to continue except for three things:

Continuous charity, beneficial knowledge and a pious son who supplicates Allah for him”.

(Muslim: The Book of Waqf: p.500)

In Islam, instances of the institution of waqf can be found during the time of the prophet

Mohammad (peace be upon him), his companions and followed by their successors for the

benefits of the entire humanity. Waqf was made by the companions even during the life time of

the prophet(peace be upon him) as Zufar argued that jewelry was donated by the wife of the

prophet and the daughter of ÑOmar, who dedicated her jewelry to her relative. MuÍammad al-

ShaÊbanÊ (d.189 A.H.) and al-SarakhsÊ (490A.H.) had approved all moveable properties not

only subject to the existence of custom during the prophet time, but to customs that arise in

another time and other countries. Malik b. Anas considered waqf as confinement for the sake of

Allah (swt), which agrees with the view of AbË Yusuf in terms of the irrevocability and

perpetuity of waqf. Moreover, MÉlik also agreed on both immovable and moveable properties as

a subject matter of waqf even if it is cash waqf. Muhammad b. Idris al-ShÉfiÑÊ (150-204 AH)

and Ahmad ×anbal(164-239 AH) defined waqf as the confinement of the property and the pledge

of its usufruct in perpetuity for the cause of Allah(swt). They also agreed on the validity of both

immoveable and moveable properties as a subject matter of waqf. Based on the above discussion,

it is understood that all the four schools of thought agreed upon the irrevocability and the

perpetuity of the waqf once it is established. Moreover, regarding moveable properties as a

subject matter of waqf it gives flexibility in creating such property as waqf, especially cash waqf.

Since most of the socioeconomic problems in the Muslim countries stem from the shortage of

funds, it is believed that the creation of cash waqf, for accumulation of the capital, is most

needed in the Muslim world at the present time.

According to classical Scholars of Hanbalite, Shafi’ite, Hanafite cash waqf is not permissible,

because cash waqf is not profitable but it can be used for fulfilling the expenses of poor and

needy people. The cash waqf here means as gold, silver, foods and drinks. According to

contemporary Muslim scholars of four madhahib, cash waqf is permissible because it can be

spent for alleviating poverty through investing the waqf properties for generating income. Ali

Afendi and Zufr argued that if a man or woman made cash waqf, it is permissible through

Mudaraba financing, and revenue should be used for the purposes of waqf in alleviating poverty

e.g. establishing educational institutions and shelter for homeless. According to the scholars of

Malikite, cash waqf is basically permissible. Ibn Taimiyyah quoted from Ahmad bin Hanbal and

said that cash waqf is beneficial through utilizing it.In order to make validity of waqf, it is

essential that the waqif (donor) should be capable of declaring his will and should have the

faculty of disposition over his property. As for the subject of the endowment, it must be of such a

kind that can be made use of perpetually. Therefore, the object of the endowment may not

consist of aliments with certain exceptions. For instance, ambergris, mask and the like would be

valid if these are taken as pleasure, but not as nourishment.

Perpetuity Element in Cash Waqf

Cash waqf is given approval in the OIC Fiqh Academy meeting held in Oman in 2004. Any

investment done with cash waqf retains its waqf character, notwithstanding the change in the

form of asset per se. This fatwá helps to retain the perpetuity of cash waqf.

To conclude the discussion on cash waqf, let us clearly state that in countries where Islamic ban-

king and finance facilities are available, providing ample avenues for the profitable investment of

cash waqf resources, the nearly eternal requirement of Imam Zufar’s rule could be given a

holiday. What needs to be done elsewhere where such facilities are yet not available needs some

food for thought. Would investment in Blockchain be possible? Or investment in Sharīʿah

compliant equity shares? Or investment in education sector, building engineering and medical

colleges to be run on commercial lines, or investing into development of waqf lands on

commercial basis serving the dual objective of earning profit for cash waqf investors and

converting dilapidated waqfs into in-come generating institutions. The possibilities are endless,

depending upon the degree of commitment and imagination.

Main Features of Cash Waqf

The distinguishing features of Cash Waqfs are as follows:

Liquid Fund as Corpus. In a ‘Cash Waqf’ the main corpus is a ‘cash capital’ as opposed to

standard immovable waqfs in which the corpus is usually a ‘real estate’. Any corpus should be

waqfable, as long as it gives some usufruct for others to benefit from it. In Bangladesh many

waqf lands have perished and disappeared by river erosion (Office of the Administrator of

Waqfs, 6) so, there is nothing non-perishable. Everyone on the face of earth is perishable (Surah

Ar-Rahman: 25). Simply by being perishable a corpus does not lose its eligibility of being

waqfable as long as shariah approves it, therefore, cash waqf is the best option for current

circumstances.

Immediate Usufruct. Unlike real estate, benefit from cash waqf follows almost immediately

after creating it. An immovable property, such as a piece of land may be worth millions but

unless it is developed into an income generating project, it is unable to give any benefit; whereas,

even a small amount of cash waqf may start generating income through investment right from its

inception.

Affordable and Convenience. Buying real property and dedicating it as waqf is only affordable

to the rich people. With cash waqf it is much easy and affordable compared to real estate due to

high expense and scarcity of immovable properties. Many Muslims who wish to contribute to the

society through awqāf cannot afford to buy an immovable property, i.e. land or real estate

property because such properties are both expensive and scarce. Cash waqf brings that

opportunity even to not-so-rich people.

Remarkable mobility of cash waqf. It enables transfer of waqf capital across economic sectors

(Kuran, 2001: 874) simply by redirecting loans from one set of borrowers to another. This makes

a huge difference. The core objective of creating a waqf, cash or otherwise, is to do a good deed

by helping others. This objective is better achievable by cash waqf.

Benefits from cash waqf. It can be provided to varied types of activities such as education,

food, social and religious services (Baskan, 2002: 13) When the waqf is in the form of cash-

capital and it is invested in order to grow, a regular usufruct can be earned and has the flexibility

to be spent for any welfare purposes. Such flexibility is not available when the waqf property is

an immovable property such as land; particularly if the land is not being utilised and not

producing regular harvests or otherwise earning a steady income from rentals etc. If a land based

waqf is not at its best in terms of its location, size and productivity, it is unable to be a steady

source of regular usufruct and the land, despite its current value, lies worthless.

Economic Benefits of Cash Waqf

The institution of awqāf in general and the cash waqf in particular has brought multidimensional

economic benefits to many Muslim nations throughout Islamic history. Many essential services,

which otherwise would have been an economic responsibility and burden on the state, were

provided to the citizens at no cost to the state (Cizakca, 1998: 1). The cash waqf could fulfil

these functions by voluntary donations made not only by the well to do and rich but also such

donations may as well be made by the poor according their ability, even in small amount of cash.

Thus, privately accumulated capital may be voluntarily endowed to finance all sorts of social

services to the society. By doing this it helps reduce government expenditure and consequently

the rate of interest. Thus waqf can be instrumental in lowering interest rate (Cizakca, 1998: 1) by

providing the most essential social services without the government having to spend any money

on them. Because it helps reduce government expenditure therefore the rate of interest goes

down. Thereby, a cash waqf based system can reduce and even eliminate riba. Such services

include, but not limited to, the following:

In Bangladesh the pioneer bank in Islamic banking is Islami Bank Bangladesh Limited (IBBL),

which has introduced a “Mudaraba Waqf Cash Deposit Account” with specified options of

purposes. This list of purposes is made readily available to the wāqif who 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. The list of purposes includes the following areas (IBBL: 2004: 836).

a. Family Rehabilitation: This includes improving the conditions of absolutely poor living below

poverty line, rehabilitating physical handicapped and disadvantaged group of people, beggars,

destitute women and uplifting of urban slum dwellers.

b. Education and Culture: This covers providing formal and informal education for orphans and

poor, development of proper education for skill development, supporting physical and vocational

training, providing scholarship for deserving students, conducting da’wah activities, supporting

religious education and research, religious and social services and establishing educational chair.

c. Health and Sanitation: This area includes village health care and sanitation, supplying drinking

water, establishing hospitals and clinics, health research grant and research in particular disease.

d. Social Utility Service: This includes providing legal aid for the deserving people in dispute

settlement, assisting in marriage of poor girls, rehabilitating reverted Muslims (New-Muslims)

and providing assistance to peace-loving non-Muslims, maintenance of public roads, mosques,

eidgahs, graveyards, plantation of trees, construction of public utility services and creating social

awareness to prohibit social vices such as gambling and other anti-social activities.

Conceptualization of Cash Waqf

It has hitherto been explained that waqf is an act of possession or appropriation of part of the

owner’s property to private ownership such as waqf endowment for charitable purposes. It can be

inferred from the waqf concept that cash waqf is a form of donating an amount of money for

devotional purposes (Magda, 2008, Majid Khademolhoseini, 2009). It can be understood from

the meaning of cash waqf that cash waqf is an amount of capital donated or given by the donor

purposely for the needs of the needy in which a significant number of citizens are facing

financial difficulties. Such monies are channelled into profitable transactions as a means of

generating income for the waqf endowment. Cash waqf differs from zakat and there is no

limitation for cash waqf in as much as it is considered sadaqah. Cash-waqf will benefit many

Nigerian Muslims because it alleviate or reduce the poverty rate among Muslims provided that

such cash waqf is consciously managed by pious and honest management.

The application of cash waqf as modern instruments

The economic meltdown and financial difficulties of the 21st century has led to demands for the

restructuring of waqf Institutions across Muslim countries in order to introduce and create

movable property such of cash-waqf in its comprehensive method and strategy. The modern

models for the creation of cash-waqf have been in place and practiced in Muslim countries such

as waqf shares model, corporate cash waqf model, deposit product model, waqf mutual fund

model and wakalah waqf fund and are critically examined, discussed, and analyzed in this

section. The models will be discussed in light of the situation of Nigerian Muslim in order to find

solutions for their many problems. This is because many Nigerian Muslim women need small

amounts of money to enhance their small scale businesses in order to empower them. Financial

assistance can be in different forms based on the discretion of the waqf endowment institution

The Deposit Product Model

This type of deposit model has been well practiced in Bangladesh in the Social Investment Bank

and the Islamic Bank Bangladesh Limited. The procedure for the deposit product model is that

the funder will deposit money directly into cash-waqf in a specific account and specific bank.

The founder would be given the list or name of beneficiaries where he/she will chose the

beneficiaries by him/her. The bank will later act as a mutawalli and invest the deposited money

into a mudarabah contract and the accumulated gain will be used for the needy (Magda Ismail,

2008). It is the duty of the waqf endowment management to consciously plan the type of

lucrative transactions and business the waqf institution wants to venture into. The feasibility of

proposed ventures should be studied and examined properly in order to meet the demands of

applicant who are in serious need.

Cash waqf mobilization from the society

This is a very important stage in the structure of the cash waqf, it is basically the starting point

towards the financial dimension of this product. The mobilization of the fund for the cash waqf is

based on the prearrangement agreement between SMEDU and SME members.

However we have to mention that the cash waqf should be established for the business

community of SMEDU in order to meet their financial needs. Followings are the important

participants from the society that makes successful mobilization of Cash waqf:

A. Individuals: The participation of the individual can be part of the contribution by having a

cash waqf certificate which represents a financial contribution to the fund of cash waqf, this cash

will be located to the cash waqf funds, and channeled to one of the available model provided by

the funds management. Participation in the creation of cash waqf by seeking the reward from

Allah Taala in the hereafter. Per capita fixed assets are decreasing day by day and liquid assets

(Cash, Bank balance, share etc.) are increasing in the present economic system. Maintenance of

Waqf property is now critical in the society. Cash waqf is the easiest way to contribute any

amount by the individuals as perpetual endowment.

B. Organizations: The organization is a very important part of the creation of the cash waqf,

regardless whether the organization is NGO or government, and regardless of the nature of their

activities. The organization will be treated as a separate identity for the cash waqf,and all the

terms and conditions apply. The contribution of the companies can be as CSR activity for the

benefit of the needy SME enterprise which is facing a financial difficulty.

C. SME members: The companies of SME represent the core of cash waqf, they are behind the

creation of the cash waqf, therefore they should be very active participant in the creation of the

endowment, they can contribute to the growth of the cash waqf by directing their business

activities to the cash waqf. On the other hand the SME will be animportant partner for the funds

management who run the cash waqf, whereby the investment of the cash waqf in the market will

be through the SME members as well.

D. Government: The government is the key player for the successful of the cash waqf operation,

the importance of the government can be observed in the following:

*Supporting the cash waqf as unique instrument and approach in the industry by allowing it as

taxfree donation.

* Facilitate the legal framework of the cash waqf by operating in the financial market, and be

part of the national business activities.

* Regulated the function of waqf by putting shariah standards that governs the waqf, this include

shariah aspect, financial aspect, accounting aspect, and managerial affairs accurately.

* Amend the existing legal framework to suit the cash waqf business operation.

* The government has the full responsibility to safeguard the interest of cash waqf of the nation

not by managing the cash waqf but by facilitating the cash waqf operation in the industry.

Full responsibility of standardized method to manage the waqf marketing, information related,

managerial, fees payment, compensations expenses which could be used for auditing,

investigation and rating.

* The government agencies related to SME can contribute to the cash waqf for the benefit of the

SME, the cash waqf can be channeled to any particular aspect of their needs and activities

according to government agencies plan and programme.

Promotion of Cash Waqf

There is likelihood that the lack of promotion may explain the low awareness about Waqf in

Malaysia. Evidently, this assertion is supported by recent studies like Faiz (2014) and Ibrahim et

al. (2013) who remarked that the lack of promotion about Waqf contribution and practice

respectively may have a huge implication for the requisite awareness needed to leverage on the

socio-economic potential of Cash Waqf as an Islamic social finance option.

On the other hand, previous studies had documented the positive and significant relationship

between marketing and promotion tools and the level of awareness. For instance, Jasim et al

(2013) reported that the use of internet did give a major impact on public awareness on e-gold

and e-silver products and trading in Trichy city in India. Moreover, Thong et al. (2013) in their

studies had found that the utilization of the marketing and promotion tool had enhanced the

awareness on microfinance among people in the central region of Malaysia. Also, studies by

Alajmovic and Wehtje (2010) found that the extensive use of media did affect people’s

awareness on disaster and the amount of money donated.

Furthermore, numerous closely related studies also had revealed the positive and significant use

of these marketing and promotion tools towards charitable giving or donation. For example,

Mano (2013) in his study had found the significant impact of social media and network in

voluntary engagement and money contribution among USA residents. Besides, Gombachika et

al. (2011) in their studies had perceived a positive and statistically significant relationship

between blood donation behaviour with SMS technology in Malawi. Explained in detail, Snipes

et al. (2010) also did find out from their study that advertising was the last but one factor that did

give positive and statistically significant relationship towards charitable giving in South-eastern

US. While Bennett & Kottasz (2000) and Simon (1997) in their respective studies did report that

strong and positive relationship exist between the time spent watching television and relief

donation in London and between US network coverage with private contribution of earthquake

severity respectively. Therefore, it is expected that;

H3: There is a statistically significant explained relationship between marketing and promotion

of Cash Waqf and awareness about Cash Waqf among Malaysian Muslims.

1.2. Investment of Cash Waqf money

The purpose of the cash waqf is to channel the funds to the market for investment to contribute to

the economic growth and generate profit to fulfill the will of the participant provided in the

policy of cash waqf if any. The funds management has the full responsibility as professional and

trustee to employ their best and effort for the success of the investment.

There are some important guidelines must be observed in order to ensure the safety of the

investment of the cash waqf, these guidelines have been mentioned by the international Islamic

fiqh academy in its resolution No. 140 (15/6) as follows:

property and to channel its usufruct to the beneficiaries with the original property protected.

qard hassan (benevolent loan), for investment either direct

investment or musharakah investment through fund investment or through issuing of cash waqf

shares. This will encourage the establishment of cash waqf from all people.

Istisna contract, the acquired asset or the assets of Istisna cannot be considered as waqf property

and it can be sold cash or reinvested but the original cash waqf amount must be preserved.

Current Practices of Cash waqf in Bangladesh

The emergence of Cash Waqf in Bangladesh is an encouraging trend and the degree of

awareness on cash waqf in recent years in Bangladesh has been remarkable. A couple of private

banks in Bangladesh have pioneered in introducing cash waqf. After government of Bangladesh

enacted the Private University Act of 1992, many private universities and higher learning

institutions have been established in the country some of which are financed by cash waqf. One

such institution is the Social Science Institute (SSI) (Sadeq, n.d: 168). SSI has an endowment

fund which is a cash waqf. The cash waqf fund is kept in the investment fund of an Islamic Bank

which operates on the basis of mudarabah. Then the profits are spent for fulfilling some Islamic

objectives laid down in the constitution of SSI. This is an encouraging trend for the rich segment

of Muslims in the country who may come forward and pool their fund to create cash waqf to help

the poor segment of the population. In this way cash waqf may add a new dimension to the

charity activities in the country.

Cash Waqf as Financing Means of Islami Banks in Bangladesh

The Social Islamic Bank Bangladesh (SIBL), for instance, offers both conventional financial

services and microfinance loans in accordance with Islamic principles and participates in

developing and managing the waqf and other religious institutions. SIBL started to operate in

1995. As corporate objective, SIBL defined its operation in three different sectors – formal, non-

formal and voluntary. While formal sector deals with general commercial activities as a

scheduled bank, non-formal sector aims at ‘Empowering Family’ by creating investment

opportunities for micro and SME clients. Its voluntary sector offers Cash Waqf Certificate

Scheme which is an innovative financial product aimed at social welfare. The Waqf properties

are converted into income generating units and the income so derived is utilised as per

instruction of the Wāqif or in the absence of such instructions, on the basis of Islamic Shariah.

The Islami Bank Bangladesh Limited (IBBL) has introduced a ‘Mudaraba Waqf Cash Deposit

Account’ (MWCDA) scheme which came into force with effect from first July 2004. In this

scheme the deposited money is invested and the profit is spent in accordance with the will and

wishes of the wāqif (IBBL: 2004: 836). The main objectives of the MWCDA scheme are as

follows:

a. To provide Banking services as facilitator to create cash waqf and to assist in the overall

management of waqf;

b. To assist mobilisation 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;

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

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

the rich;

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

f. To assist in developing capital market;

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

security and social peace.

Operational Guidelines of Cash Waqf Based Products Adopted by Some Islami Banks in

Bangladesh

Cash Waqf deposit accounts have long been introduced by a number of Islamic Banks in the

country. All these banks have guidelines for operating this type of account that are convenient,

customer-friendly and motivational in promoting good deeds.

Cash Waqf based ‘Mudaraba Deposit Account’

Islami Bank Bangladesh (IBBL), Exim Bank, Shah Jalal Islami Bank and Social Islami Bank all

have introduced ‘Mudaraba Cash Waqf Deposit’ as a product that creates an opportunity for the

wealthy people to invest in different religious, educational and social services. Income generated

from the Cash Waqf fund is spent for different purposes chosen by the Wāqif.

The Objectives of Cash Waqf Mudaraba Deposit Accounts (CWMDA)

The followings are the objectives set by the above banks for the Cash Waqf based mudaraba

deposit accounts:

a. To provide assistance in overall development efforts of the country and to make a unique

integration of social security and social peace.

b. To help transform the collected Cash Waqf to social capital, as well as to help develop social

capital market.

c. To help increase social investment aiming eradication of poverty;

d. To motivate, promote and encourage rich communities' awareness on their responsibility for

social development in the country and to create awareness among the rich regarding their

responsibilities to the society.

e. To stimulate integration between social security and social welfare.

f. To provide banking services as facilitator to create Cash Waqf and assist the deprived people

of the society.

g. To assist mobilisation 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.

h. To benefit the general public, especially the poor sections of the people out of the resources of

the rich.

i. To facilitate for religious activities that are otherwise neglected due to lack of financial

resources.

Cash Waqf in Perpetuity and Mutawalli’s Discretions

These Cash Waqf Mudaraba Deposit Accounts are created in Perpetuity where cash deposit is

received as endowment on Mudaraba principle. Bank manages the Waqf Fund on behalf of the

Wāqif. The principal amount of the account will not be allowed to be withdrawn. But the Wāqif

in his/her life time may however transfer the account elsewhere at his/her own discretion.

In life time, the Wāqif himself will act as the Mutawalli. A Mutawalli nominates his successive

Mutawalli through written application to the bank. After the demise of the Wāqif, Mutawalli will

not be allowed to dismantle the Waqf deposit amount.

CWMDA Created with Lump Sum Amount or by Instalment

Wāqif has a choice to create cash Waqf with a lump sum amount given at once or on instalment

basis where he/she may start with a minimum deposit of Tk,10,000.00 (taka ten thousand) only

and the subsequent deposit shall also be made in thousand or in multiple of thousand taka. In

case of instalment basis Cash Waqf, advance payment for any number of instalments will be

received by the bank. In the event that the wāqif fails to continue depositing the instalment(s), the

amount accumulated so far throughout the period shall be counted for profit to be given to that

account. Next year the Wāqif will get the opportunity to deposit his/her instalment(s) again.

Mentionable that, one particular Wāqif will not be entitled to repeat non-depositing of

instalment(s) more than five times.

Issuance of CWMDA Certificate and Receipt

Cash Waqf is accepted in specified Endowment Receipt and a Certificate for the entire amount is

issued as and when the declared amount is built up in full. In case of failure of the Wāqif to

deposit instalment any more, the Wāqif may request in writing to the effect that he is unable to

deposit the rest amount to cover the declared Cash Waqf. Thereby, he may be issued Cash Waqf

Certificate considering the amount so far deposited.

How CWMDA Operates

Cash Waqf Mudaraba Deposit Account (CWMDA) operates as a contract between the depositor

and the bank where the account will be governed by the Mudaraba Principles of Islamic Shariah.

In this contract, the depositor is termed as Wāqif or Saheb-Al-Maal or owner of fund and the

Bank as Nadjir or Mudarib or business organiser.

Investment in Conformity with Shariah

The amount deposited in the Cash Waqf account is invested as per Bank's own decision in

conformity with the Shariah.

High Rate of Investment Income

The Wāqif or the beneficiary under MCWD scheme shall get maximum 65% of investment

income or the percentage as the Bank decides from time to time to their proportion of deposit

applying the weightage allocated there-against. Weightage against deposit of Mudaraba Cash

Waqf Deposit (MCWD) Account is 1.19.

Distribution of Usufruct to the Beneficiaries

Before declaration of final rate of profit, monthly profit amount will be credited to the account as

per provisional rate of profit offered by the bank from time to time. Profit under this scheme

shall be adjusted annually i.e. after declaration of final rate of profit of the bank. Profit amount

only will be spent for the purpose(s) specified by the Wāqif. Unspent profit amount is

automatically added to Waqf amount. Profit earned can be withdrawn and spent by the

Bank/Wāqif/Mutawalli for the cause(s) specified in the list. Specified cause may however, be

changed by the Wāqif during his/her life time. The Wāqif can give standing instruction to the

bank to transfer specified instalment from his/her account maintained with the branch. In such

cases the bank charges a minimal service charge from the wāqif's account.

Profit Loss Sharing

As the waqf fund is operated under Mudaraba Principle, the waqf amount may not remain intact

due to sharing the profit and loss. As per Mudaraba Principle if any loss is incurred in course of

business, the loss is to be realised through deduction of the Waqf deposit.

Waqf Management Committee

A special Waqf Management Committee comprising of the officials of the bank will manage the

waqf fund. In case of any query/complaint (if raised by the Wāqif) regarding the mismanagement

of the fund or others, the committee shall look upon the issue and the decision of the Committee

will be the final.

Readily Available List of Purposes

The Wāqif has the right to choose from the list of purposes to be served either from the following

list or any other purposes permitted by Shariah:

a. Family Rehabilitation

This includes providing food to the poor; making shelter for the poor; improving the conditions

of hardcore poor living below the poverty line, rehabilitation of physically handicapped and

disadvantaged people; street beggars; destitute women and Up-liftment of urban slum dwellers.

b. Education, Sports, Da’wa & Culture

Providing Education facilities to the orphans; such as supplying books, development of technical

education for skill development and vocational education in general, providing

scholarships to deserving students and also deserving dependants and descendants, financing

research and establishing educational chair. Physical education and sports facilities. Conducting

Dawah activities. Supporting to Islamic culture, heritage and art promotion. Celebrating different

Islamic Festivals.

c. Health & Sanitation:

Providing health care by establishing hospitals, clinics and providing health care programmes

especially for the poor. Health research grant and research in particular disease. Supplying

sanitation facilities to villages and supplying pure drinking water by providing dip tube well.

d. Social Service

This includes providing legal aid to the poor and deserving people. Providing assistance to

dowry-less marriage(s) to poor girls. Planting and maintaining trees on the sides of public roads;

to rehabilitate the Reverted Muslims (New Muslims). Providing assistance to peace loving Non-

Muslims and solving their problems. Creating social awareness to prohibit gambling and other

social vices such as theft and other anti-social activities. Construction, installation and

development of public utility services. Maintenance of specific mosque(s) with/without an

income generating project. Maintenance of a specific graveyard with/without an income

generating project. Maintenance of specific Eidgah(s) with/without an income generating project.

Arrangement after Serving the specific purpose or Death of Wāqif

If the goal/purpose of waqf is attained/ended, the income/profit of the waqf account will be spent

as per additional indication of the wāqif which is to be mentioned at the time of opening the

account. If it is not mentioned or if there arise any contradiction, the Committee's (Waqf

Management Committee) decision shall be final.

In the event of death of Wāqif, profit of that Waqf Account will be spent as per option given by

the Wāqif. However, in case of the shortfall amount of the declared amount (if any) may be

deposited by the successor(s) of the deceased Wāqif.

Liabilities and Rights of the Bank

The Wāqif agrees that the bank will not be liable for any loss or any damage if the bank is unable

to provide services in connection with the account(s) due to postal, courier, electrical,

mechanical, telecommunications or by reason of act of god, catastrophe, war, civil or industrial

disturbance, computer failure or any other cause beyond Bank's control and that cannot be

overcome by reasonable diligence and without unusual expenses. Operation of this account will

be guided by the Money Laundering Prevention Act-09 and other terms & conditions as

prescribed by the Bank from time to time. VAT/Tax, Excise Duty or other charges (if applicable)

to be deducted from the account as per prevailing rules of competent authority (ies). Bank

reserves the right to change/amend/alter/modify the weightage, profit distribution principles or

any of the rules of the scheme from time to time as per Bank's standard & policy.

The laws, rules and regulations of Bangladesh and custom and procedures applicable to the

scheduled bank in Bangladesh shall apply to and govern the conduct of the account opened with

bank. Though the Bank maintains strict confidentiality in all affairs of the account, Bank shall

always be entitled to disclose any information regarding Wāqif's accounts held with the Bank to

any of the followings:

a. Any regulatory, supervisory, governmental or quasi governmental authority with the

jurisdiction over the bank.

b. Any person to whom the bank is required or authorised by law or court order to make

disclosure.

An overview of SIBL

The SOCIAL ISLAMI BANK LTD (SIBL), a second-generation commercial bank, operating

since 22nd November, 1995 based on Shariah' Principles, has now 155 branches all over the

country with two subsidiary companies - SIBL Securities Ltd. & SIBL Investment Ltd. Targeting

poverty, SOCIAL ISLAMI BANK LTD, is indeed a concept of 21st century participatory three

sector banking model in one. In the formal sector, it works as an Islamic participatory

commercial bank with human face approach to credit and banking on the profit and loss sharing.

It has a Non-formal banking sector too with informal finance and investment package that

empowers and humanizes real poor family and create local income opportunities and discourages

internal migration. The bank has another sector to monetize the voluntary sector and

management of Waqf, Mosque properties and has introduced cash Waqf system for the first time

in the history of banking. In the formal corporate sector, this Bank, among others, offers the most

up-to-date banking services through opening of various types of deposit and investment

accounts, financing trade, providing letters of guarantee, opening letters of credit, collection of

bills, leasing of equipment and consumers' durable, hire purchase and instalment sale for capital

goods, investment in low-cost housing and management of real estates, participatory investment

in various industrial, agricultural, transport, educational and health projects and so on.

The Bank has taken a renewed drive aiming at consolidating its business in more focused areas

covering SME and Agro-finance with emphasis on searching for alternative delivery channel

under which SMS banking and mobile based remittance payment systems and by gradually

introducing the same to disseminate the SIBL services to the doorsteps of the customers. The

Bank has already introduced Internet Banking and launched some new products to strengthen its

business. The products are Sonali Din, Sommridhir Sopan, Sonchoy Protidin, Swopner Shiri,

Shukher Thikana, Sabuj Chhaya, Sabuj Shayanho, Subarnolata, Subornarekha, Sanchita etc. and

Zameel ATM Debit card. .

SIBL is a pioneer in introducing on-line banking among all the Islami Banks of the country with

state-of-the-art banking software. The state-of-the-art banking software enables the Bank to

provide any branch real time banking service to the clients. SIBL is supported by core banking

solutions and our products & services are strongly backed by IT infrastructure, which are

upgraded & expanded on continuous basis.

SIBL has set its strategy to convert all its banking activities from traditional branch-based

banking system to an ideal blending of both centralized processing unit (CPU) and effective

operation of branch that is based on modern essence of banking.

The Bank is running its payment system successfully through BACPS, BEFTN under BACH in

order to boost its businesses in multiple dimensions. By adopting BACH System as per

guidelines of Bangladesh Bank, SIBL ensures security, safety and hassle free faster transactions

from end to end. Moreover, the Bank is effectively adopting regulatory guidelines on IT risk

management.

SIBL is quite conscious of its social business responsibilities and is always trying to participate

in various social programme in the country under its CSR portfolio giving special emphasis on

health, habitat & education. The Bank ensures to provide better integrated idea of formal,

informal & voluntary banking in the same platform. SIBL has its unique feature to mobilize

capital through CASH WAQF programme.

SIBL lays emphasis on employment generating, environment friendly and green banking based

investment keeping an eye on equitable distribution of resources over geographical territory for

sustainable growth of macro economy of the country.

The Corporate Governance system in SIBL ensures transparency and accountability at all levels

in conducting business. The Bank's continuous effort has been to increase the shareholders' value

and to be valued as a compliant organization.

Our Vision

Working together for a caring society দরদী সমাজ গঠনে সমনেত অংশগ্রহণ

Our Mission

Establishing Three Sector Banking Model

Transformation to a service oriented technology driven profit earning Bank

Fast, accurate and satisfactory customer service

Balanced & sustainable growth strategy

Optimum return on shareholders’ equity

Introducing innovative Islamic Banking Products

Attracting and retaining high quality human resources

Empowering real poor families and creating local income opportunities

Providing support for social benefit organizations by way of mobilizing funds and social

services

Our values

Honesty To be honest is ordained by the scripture – we stick to this value in all our

service provision.

Transparency Remaining transparent in all acts is a virtue that's builds trust - we adhere

to it.

Efficiency Efficiency implies perfection in any job done - we strive to render full

satisfaction with it.

Accountability To be accountable is to be responsible and above any suspicion - we are

dutifully there.

Religiousness SIBL enhances economic well being with regard to the bliss of religious

ethics.

Innovation Our minds and eyes are open to the evolution in quality of life to innovate

further benefits for the service takers.

Flexibility Flexibility leads to better understanding and greater satisfaction - we pursue

the quality.

Security Customers must feel secure with all our products and services - we keep on

ensuring it.

Technology Modern life is technology dependent - we keep looking for the latest

development to provide the best in ease to our clients.

Cash Waqf Deposit

In the Voluntary Sector, SIBL has also introduced Cash Waqf Certificate, a new product for the

first time in the Banking history so that a new beginning can be made for a participatory

economy.

This scheme has been well received by the public in general for its unique features. SIBL as a

pioneer of this innovative financial product of social capital mobilization has received both local

& international accreditation.

By opening a Cash Waqf Deposit A/C someone can get an opportunity to do welfare to the

mankind through Sadaka-e-Jariah. SIBL urges to all religious & affluent persons of the society to

come forward to mobilize Cash Waqf Deposit so that the profit may be utilized for the well-

being of mankind.

The Guidelines for operation of this scheme are stated below:

Cash waqfs shall be accepted as endowment in conformity with the Shariah. Bank will manage

the waqf on behalf of the waqif. Waqfs are done in perpetuity and the account shall be opened in

the title given by the waqif.

The 32 purposes under 4 major fields like (1) Family Rehabilitation (2) Education & Culture (3)

Health & Sanitation (4) Social Utility and (5) Others are considered as General Guidelines for

distribution of profit of Cash waqf A/Cs. In the case, where only fields(s) for distribution of

profit are mentioned without specifying the name of the beneficiary(s) whether individual(s) or

institution(s), those Cash Waqf will be treated as General Cash Waqf and the profit of those

A/Cs will be spent for welfare of mankind in the field of (1) Family Rehabilitation (2) Education

& Culture (3) Health & Sanitation (4) Social Utility and (5) Others. On the other hand, Waqif

may choose distribution of the profit to any specific individual(s)/ institution(s). Those A/Cs will

be treated as Specific Cash Waqf, the profit of those A/Cs will be sent to the beneficiary(s) as

specified by the Waqif.

The amount deposited in the Cash Waqf A/Cs will be invested as per Bank's own decision in

conformity with the Shariah and the Cash Waqf amount will earn profit at the highest rate

offered by the Bank from time to time. The waqf amount will remain intact and only the profit

amount will be spent for the purpose(s) specified by the Waqif. Unspent profit amount will

automatically be added to waqf amount and earn profit to be grown over the time. No cheque

book will be issued in this account.

Waqif may also instruct the Bank to spend the entire profit for the purpose specified by him/her.

Waqif has the opportunity to create cash waqf at a time. Otherwise he/she may declare the

amount he/she intends to build up and may start with a minimum deposit of Tk. 1,000/= (one

thousand) only (or equivalent foreign currency). The subsequent deposits shall also be made in

hundred or in multiple of hundred Takas. However, General Cash Waqf A/Cs (where name of

beneficiary whether Individual(s) or Institution(s) are not mentioned) may be opened by

depositing a minimum sum of Tk. 1,000/= only. Specific Cash Waqf A/Cs (where name of

beneficiary whether Individual(s) or Institution(s) are mentioned) by depositing a minimum sum

of Tk. 5,000/= & above

Waqif shall also have the right to give standing instruction to the bank for regular realization of

cash waqf at a rate specified by him/her from any other A/C maintained with SIBL.

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.

Account of Cash Waqfs are maintained in a separate ledger and necessary charges as per rules

may be deducted therefrom.

In case of any change of address of the Waqif or beneficiary, must be informed by the Waqif to

the Bank immediately

Bank however reserves the right to regret to open any Cash Waqf Account.

The rules of Cash Waqf Account are subject to amendment in conformity with the Shariah at any

time by the Bank.

Corporate Social Responsibility (CSR)

As an Islamic Bank, Social Islami Bank Limited is quite conscious of its social responsibility and

always trying to participate in social cause program in the country. The bank is committed to

serve the society at large through its family empowerment Micro Investment, Micro Enterprise

and SME programs under non-formal sector, social capital mobilization through CASH WAQF

and other programs under voluntary sector. The bank has already formed CSR Desk with the aim

to serve humanity through different philanthropic activities giving emphasis on health and

Education. The bank believes that any kinds of social & philanthropic activities would improve

the quality of the lives of the poor masses of the country.

The Board of Directors of the Bank consists of winning personalities in respective area of Trade,

Commerce & Industry of the country. Under the proactive guidance, policy and direction of the

Board, Management conducts its business operations. The Corporate Governance systems in

SIBL ensure transparency and accountability at all levels in conducting business.

The Shariah Supervisory Committee is consisting a group of prominent Islamic Scholars,

Economists and Lawyers to advise the Management on Shariah matters relating to the business

operations.

The Board of Directors provides leadership and direction to the Management to attain goals and

objectives of the bank. The solid performance of the bank that achieved is due to the divine

blessings of Allah Subhanahu Wa Ta'ala and constant guidance, cooperation and support of the

Board & Shariah Supervisory Committee as well as committed, dedicated and hard work of the

Management Team.

Formation of the Shariah Supervisory Committee (SSC)

Article 104 of the Articles of Association of the Bank provides, On the licensing of the Social

Islami Bank Limited, an Islamic Shari'ah Supervisory Committee shall be constituted with

members from Fakihs/Islamic Scholars, Economists, Banker and Lawyers to advise the company

on the operation of its business in order to ensure that they do not involve any element which is

not approved by Shari'ah. The Shari'ah Supervisory Committee consists of 07 (Seven) members

nominated by the BOD of the Bank. Shariah Supervisory Committee of the Bank plays a vital

role in framing and exerting policy for strict adherence of Shari'ah principles in all activities of

the Bank since its very inception. The Shari'ah Supervisory Committee, which enjoys a high

status in the structure of the Bank. Members of the Shariah Supervisory Committee meet

frequently and deliberate on different issues confronting the Bank on Shariah matters. They give

opinion and supervise to implement and comply Shari'ah principles in all activities of the Bank.

Functions of the Committee

The function of the Shari'ah Supervisory Committee to offer views on matters related to the

Bank from time to time. The Shari'ah Supervisory Committee may require any papers from the

Bank and examine the same in order to ensure that all activities of the Bank are being carried out

in accordance with the Islamic principles.

To devote time and effort to devising more Shariah compliant transactional procedures,

templates and banking products that enable the Bank to adapt to market trends while maintaining

a high competitive edge in deposit procedures, investments and banking services

The SSC assist the BOD by way of advice on matters relating to Shari'ah. The BOD must respect

their recommendations on Shari'ah principles as it is committed to run the Bank strictly in

accordance with Shari'ah.

Analysing contracts and agreements concerning the Bank's transactions, as submitted by the

Chairman of the Board of Directors or any department/branch within the bank or requested by

the Board itself so that Shariah compliance can be evaluated and maintained.

Ensuring Shariah compliance in the implementation of all banking transactions and correcting

any breaches.

The SSC have a Secretariat with a Member-Secretary, who see whether the functions of the Bank

are being carried out in accordance with the principles of Islamic Shari'ah. The Member-

Secretary shall remain responsible to the Shari'ah Supervisory Committee.

The status of the SSC shall be advisory to the BOD and Supervisory in respect of operational

activities of the Bank.

The Committee submits a complete annual report for the Board of Director, summarizing all the

issues referred to the Board, as well as its opinion on the Bank's transactional procedures.

The Shariah Supervisory Committee certifies the Annual report of the bank.

Activities of the Department i.e Shariah Supervisory Committee Secretariat

The Secretariat are consist of Muraquibs, who are entrusted with sufficient knowledge about all

schools of Islamic thoughts. They supervise & monitor day to day operation of the banks as well

as provide necessary guidelines in order to ensure full compliance of Shari'ah Principles.

To conduct Shariah Audit and Inspection of all Branches of the Bank to ensure Compliance of

the Shari'ah principles in each and every case of the Bank and will be responsible to the SSC.

To motivate the executives and officers of the Bank to the Islamic Shariah principles, to make

them practicing Shariah rules particularly in all types of Investments.

The Secretariat also assist the Member-Secretary for conducting the Shariah Supervisory

Committee meetings, co-operate to arrange client get together in the branches in presence of

Shariah Supervisory Committee Members and to convince the people for Banking in accordance

to Islamic Shariah.