1

Mohammad Mofizur Rahman

AVP & General Banking Incharge
Export Import Bank of Bangladesh Ltd.
Motijheel Branch.

Bank is a financial intermediator which accepts money from depositors and provides it to the surplus end and the margin
is profit for bank.

Bank is a Govt. approved Financial Institution which collect/receive fund from surplus unit, repayable on demand or
otherwise and deploy to the deficit unit duly observed some rules & regulations.

There are mainly two types of deposits:

(i) Demand deposit: Demand deposits are the deposits which are payable on demand. These are
√ Al-Wadia Current deposits
√ Sundry deposits
√ 9% of Mudaraba Savings deposit
√ Balances of Bills Payable account.
Advantages Disadvantages
 Low cost or comparatively low cost  These are unstable
fund
 Not easy to collect  Some times risky, can be used for
money laundering

(ii) Time deposit: Time deposits are those which are deposited for a definite period of time on certain
rate of profit/interest, normally not withdrawable on demand. But in special cases the depositors may
withdraw their fund before maturity period and in such cases banks penalize the depositors by not giving
interest/profit wholly or partly as per rule of the bank. The time deposits are –
√ Mudaraba Short term deposits
√ Mudaraba Term Deposit (MTDR) / FDR
√ Mudaraba Scheme deposits
√ 91% of Mudaraba Savings deposits.
Advantages Disadvantages
 These are big amount at a time  More costly fund
 This type of deposits are stable  Sometime difficult to collect.

Islamic banks receive deposits under two Shariah principles:

A. Al-Wadeeah principle.
B. Mudaraba principle.

Al-Wadeeah:
Fund which is deposited with Banks by the depositors with clear permission to utilize/invest the same is called Al-
Wadeeah. Islamic banks receive deposits in Current Accounts on the basis of this Al-Wadeeah principle. Islamic banks
obtain permission from the Al-Wadeeah depositors to utilize the funds at its own responsibility and the depositors would
not share any profit or loss earned/incurred out of using of these funds by the bank. The banks have to pay back the
 2

deposits received on the principle of Al-Wadeeah on demand of the holders. The depositors have to pay government
taxes and other charges, if any.

Mudaraba:
Mudaraba is a partnership of labour and capital, where one partner provides full capital and the other one manages the
business. The capital provider is called Sahib-Al-Maal and the user of the capital is called Mudarib. As per Shahriah
principles, the Mudarib will conduct the business independently following Shariah principles. The Sahib-Al-Maal may
provide advices, if he deems fit but he can not impose any decision over the Mudarib. Profit, if any, is divisible between
the Sahib-Al-Maal and the Mudarib at a predetermined ratio, while loss, if any, is borne by the Sahib-Al-Maal. Mudarib
can not avail of any salary or remuneration against his labour as a manager or conductor of the enterprise/business. The
deposits, received by Islamic banks under this principle are called Mudaraba Deposits. Here, the depositors are called
Sahib-Al-Maal and the bank is called Mudarib. The Mudaraba deposits include:

Islamic banks receive deposits under two principles:

a) Al-Wadeeah principle.
ii) Mudaraba principle.

Al-Wadeeah:

Fund which is deposited with Banks by the depositors with clear permission to utilize/invest the same is called
Al-Wadeeah. Islamic banks receive deposits in Current Accounts on the basis of this Al-Wadeeah principle.
Islamic banks obtain permission from the Al-Wadeeah depositors to utilize the funds at its own responsibility
and the depositors would not share any profit or loss earned/incurred out of using of these funds by the bank.
The banks have to pay back the deposits received on the principle of Al-Wadeeah on demand of the holders.
The depositors have to pay government taxes and other charges, if any.

Mudaraba:

Mudaraba is a partnership of labour and capital, where one partner provides full capital and the other one
manages the business. The capital provider is called Sahib-Al-Maal and the user of the capital is called
Mudarib. As per Shahriah principles, the Mudarib will conduct the business independently following Shariah
principles. The Sahib-Al-Maal may provide advices, if he deems fit but he can not impose any decision over
the Mudarib. Profit, if any, is divisible between the Sahib-Al-Maal and the Mudarib at a predetermined ratio,
while loss, if any, is borne by the Sahib-Al-Maal. Mudarib can not avail of any salary or remuneration against
his labour as a manager or conductor of the enterprise/business. The deposits, received by Islamic banks under
this principle are called Mudaraba Deposits. Here, the depositors are called Sahib-Al-Maal and the bank is
called Mudarib. The Mudaraba deposits include:

Exim Bank as an Islami Shariah based bank have some fully shariah based deposit products. The list of the deposit
products are discussed below:
 3

Account Opening Procedure/ Papers required for opening various types of accounts and operation are discussed
below.

a). Single account/ Individulas account:

i) Passport size photograph 2 copies duly signed & attested by the introducer

ii) One copy photograph of the nominee duly attested by the intending account holder,

iii) Copy of Passport/National ID Card/Driving License/Office ID/Word Commissioner’s

certificate/any ID card acceptable to the bank.

iv) ETIN certificate (if applicable).

v) Photocopy of Utility Bill.

b). Joint account:

i) Two copies passport size photograph of each duly signed & attested by the introducer,

ii) Joint account declaration form,

iii) Photograph(s) of the nominee duly attested by the intending account holder (if necessary),

iv) Photograph(s) of the nominee duly attested by the intending account holder (if necessary)

v) Copy of Passport/National ID Card/Driving License/Office ID/Word Commissioner’s

certificate/any ID acceptable to the bank

vi) ETIN certificate (if applicable).

Photocopy of Utility Bill

c). Partnership account:

i) copies passport size photograph of each who will operate the account duly signed & attested

ii) Certified copy of valid trade license,

iii) Certified copy of registered partnership deed,

iv) Partnership account agreement form (Maximum 20 persons may form a partnership firm.

v) ETIN certificate

vi) List of partners alongwith their full address and phone numbers,
Resolution of the partners to open the A/C and authorization for its operation duly certified by
the Managing partner,

vii) Copy of passport/National ID card/Driving License/Office ID/Word Commissioner’s

certificate/any ID card of the operators acceptable to the bank.

viii) Photocopy of Utility Bill

 4

d). Proprietorship account:

i) Two copies passport size photograph duly signed & attested

ii) Certified copy of valid Trade license,

iii) Photo of nominee duly attested by the proprietor of the firm

iv) Proprietorship declaration form

v) ETIN certificate

vi) Copy of passport/National ID card/Driving License/Word Commissioner’s certificate/any ID card

acceptable to the bank.

vii) Photocopy of Utility Bill

e). Limited Co. account:

i) Attested two copies photographs of each persons who will operate the account

ii) Certified (by the MD/Chairman) copy of the Memorandum & Articles of Association

iii) Certified copy of Certificate of Incorporation,

iv) Certified copy of Certificate of Commencement of business (in case of Public Ltd. Co.)

v) Latest list of Directors with designation, full address and phone nos

vi) Certified copy of forms-XII certified by the Register of Joint Stock Company (in case of change
in directorship),

vii) Resolution of the Board in Banks prescribed form, (There should be minimum 2 and maximum
50 members in case of a Pvt. Ltd Company. But in case of Public Ltd Company the members
will be minimum 7 and maximum will be limited by number of shares of the company.)

Board resolution for opening the account and authorization for its operation duly certified by the
Chairman/MD of the company

Copy of updated Trade License

Updated ETIN certificate,

Certificate of Registration incase of Insurance companies

Copy of Passport/National ID card/Driving License/Word Commissioner’s certificate/any other ID

acceptable to the bank of the operators of the A/C.
 5

f). Association/Club/Trust/Society/Charity Organization/Educational Institution /Masjid/Madrasha account:

i) Certified copy of By-Laws/Memorandum and Articles of Association/Trust deed

ii) Certified copy of Certificate of Registration/Permission from the concerned Department(s) of the
Gov’t
iii) List of members of the Governing body/Executive Committee with their address and phone nos.

iv) Resolution of the Board/Executive Committee/Governing body for opening the account and
authorization for its operation duly certified by the Chairman/Secretary/President
v) Registration certificate (if registered)

vi) Permission letter from Bureau of NGO (incase of NGO A/C)

vii) Attested two copies photographs of each persons who will operate the a/c.

viii) Copy of Passport/National ID card/Driving License/Office ID/Word Commissioner’s

certificate/any ID card acceptable to the bank of the operator(s).

g). Foreign Currency account for Bangladeshi Wage earners:

i) Photocopy of valid passport with valid visa

ii) Photocopy of Employment contract/work permit/appointment letter

iii) Two copy passport size photographs of account holder duly attested by the introducer

iv) Two copies passport size photographs of nominee duly attested by the account holder.

h). Foreign Currency account for foreign nationals/Company/Firm:

i) Two copies passport size photographs of account holder(s) who will operate the account

ii) Photocopy of valid passport of the account holder (to be attested by the dealing officer) and
operators of other types of account

iii) Copy of service contract letter/work permit for individual

iv) Copies of registration in Bangladesh with Board of Investment/Bangladesh Bank for Foreign/Joint
Venture Firms

v) Copies of Memorandum & Articles of Association- Bye Laws or joint venture agreement (as the
case may be)

vi) Copy of registered partnership deed duly attested (incase of partnership) and other papers /
documents as per rule of our bank considering the type of a/c.
 6

Special Type of account Accounts:

a). Minor account:

i) Two copies passport size photograph of the minor duly attested by the natural guardian/legal
guardian duly appointed by the Court.

ii) Two copies passport size photograph of the legal guardian who will operate the account duly
attested by the introducer

iii) Attested Birth certificate of the minor,

iv) Attested copy of Passport/National ID card/Driving License/Office ID/Word Commissioner’s

certificate/any ID card acceptable to the bank.

v) Photocopy of Utility Bill

b). Lunatics Person:

i) All contracts made by lunatics are void except those made during lucid intervals. A customer may
become lunatic after opening his account with the bank. In such a case , the bank will not be
responsible if he honors a cheque or bill duly drawn, accepted or endorsed by the lunatic unless he
receives notice of a customer’s lunacy or insanity from the competent court.

ii) All papers required by an individual to open a account

c). Illiterate Persons: An illiterate person cannot sign his name and, hence, the bankers should take the following
Steps in opening of account of an illiterate person.

i) Thumb impression: The left hand thumb impression of the depositors should be obtained on the
account opening form and the specimen signature card in thte presence of an authorized
supervising officials.

ii) Where possible, brief details of one or two identification marks of the depositor should be noted on
the account opening form and the specimen signature card under authentication of an authorized
official

iii) All papers required by an individual to open a account

 7

Letter of Thanks & Letter of Welclcome:

Letter of is a system to justify the address of a new account holder. We can verify the address by sending
thanks to the account holder’s address with a request for receipt acknowlement. I the account holder fake
address he will not able to provide the acknowledgement copy. Thus we can verify the account holders
address without visiting his address physically.

KYC: KYC means Know Your Customer. It contains information of the customer and helps to assess the risk
involved. It is compulsorily to be obtained duly signed by all the deposit & investment clients.

CDD: Customer Due Diligence is identifying the customer and verifying that customer’s identity using
reliable, independent source documents, data or information. Identifying the beneficial owner, and taking
reasonable measures to verify the identity of the beneficial owner, such that the financial institution is
satisfied that it knows who the beneficial owner is. For legal persons and arrangements this should include
financial institutions understanding the ownership and control structure of the customer. Understanding and,
as appropriate, obtaining information on the purpose and intended nature of the business relationship.

EDD: Enhanced Due Diligence is Any additional due diligence measures undertaken over and above the basic
due diligence can be termed as 'Enhanced Due Diligence'. EDD needs to be undertaken for all the high-risk
customers of a bank. EDD can also be built in the account opening processes at the product level or customer
type level, where the high risk customers are easily identifiable. Other EDD measures like enhanced level of
transaction monitoring for high-risk customers can be undertaken for customers who fall in the high-risk
category post the exercise of customer risk categorization. EDD on existing accounts may also be conducted if
required when AML alerts are generated as a part of the transaction monitoring process.

TP: A declaration for probable number & amount of transactions during a month from the customers to be
obtained by all Banks & Financial institutions to identify & observe abnormal transactions.
Abnormal/doubtful transaction will be considered if the declared transaction limit exceeds and failed to
explain the justification. Justified exceeds of TP limit should be recorded and preserved. This declaration of
probable transaction limit during a period is called Transaction Profile. This declaration form contains Name,
A/C no, Address, Postal address, highest amount of monthly transaction in cash/transfer/clearing/on line
deposit/withdraw, foreign exchange inward amount, investment, business turnover etc. Fresh declaration of
TP limit to be obtained if the TP limit of a customer exceeds frequently for obvious reasons.

Conract: A contract is an agreement enforceable at law made between two or mre persons.

i. Agreement
ii. Free Consent
iii. Consideration
iv. Enforceable by law