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General Banking Operations of Islami Bank

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Submitted By rupel1
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Pages 39
General Banking Operations

General banking provides the foundation of banker – customer relation ship through openingaccount. This is the busiest department and the daily transactions of concerned to thecustomers for drawing or depository money , selling of the instrument to them for remittance purpose, collection of their instruments providing other services to them and keep customer section busy.Usually the following sections/departments are involved to perform the general bankingoperations:
˃ Cash Section
˃ Bills & Remittance Section
˃ Clearing and Collection Section
˃ Accounts Section

Mudaraba
The word 'Mudaraba' has been derived from Arabic word 'Darb'/'Darbun' which means“Travel”. Thus the word ‘Mudaraba’ means travel for undertaking business.Mudaraba is a form of partnership in profit whereby one party provides capital and the other party provides skill and labour.The provider of capital is called ‘Shahib-al-Mal’ or the ‘Rabb-ul-Mal’ (the financier or owner of the fund) and acts like a sleeping or dormant partner while the provider of skill and labour is called ‘Mudarib’ (entrepreneur/organizer) who provides the entrepreneurship andmanagement for carrying on any venture, trade, industry or service with the objectives of earning profits.Both the parties share the profit as per pre-agreed ratio and the losses, if any, being borne bythe provider of capital i.e. ‘Shahib-al-Mal’ except if it is due to breach of trust, misconduct,negligence or violation of the conditions agreed upon by the Mudarib becomes liable for that.The Mudarib is in the nature of a trustee as well as an agent of the business. He is to work with honesty and sincerity and to exercise the maximum possible care and precaution in theexercise of his functions.

Deposit Products of FSIB

 Al-Wadeah Current Account
 Mudaraba Savings Account
 Mudaraba Special Notice Account
...

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