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.