Q. Can a bank open Asaan Account of nonresidents or foreign nationals?
- No. Asaan Account is meant for resident individuals having Pakistani nationality only. The bank may guide nonresidents or foreign nationals to open regular bank account.
Q. Is it mandatory to strictly impose total per month debit limit and total credit balance limit i.e. Rs. 500,000? Is there any exception?
- Yes. The limits mentioned for Asaan Accounts should be implemented through appropriate system changes. However, following exceptions are available: • Credit transactions beyond total credit balance limit of Rs. 500,000 in case of inward remittances in Asaan Account subject to proper analysis of transaction and evaluation of risk. • Credit of any profit/ return on deposit in the Asaan Account beyond total credit balance limit of Rs. 500,000. • Bank charges, government taxes or levies and instructions issued under any law or from the court will not be subject to debit or withdrawal restriction beyond total debit per month limit of Rs. 500,000.
Q. What should a bank do if transactions exceed the specified limits for Asaan Accounts?
- In such scenario, the bank may guide the customer to convert his/her Asaan Account into regular account as per the Guidelines.
Q. Are outward remittances allowed in Asaan Account?
- No, However international transactions through debit card shall be permitted within the applicable limit of Rs. 500,000.
Q. If a TDR is issued against an Asaan Account, will this TDR amount be considered when calculating the total credit balance in the said Asaan Account?
- Yes, If Term Deposit Receipt (TDR) is to be issued from Asaan Account, the amount lying in TDR will be clubbed with the balance available in Asaan Account for calculating total Credit balance.
Q. Is the same procedure and documents required for opening of Asaan account s in case of regular account?
- No, The procedure for opening of Asaan Account is easier and only copy of CNIC and minimum deposit of Rs. 100 is required along with account opening form to open an account. In addition, there is no requirement for letter of thanks and proof of income.
Q. Whether both types of verification from NADRA i.e. Verisys and Biometric are necessary for Asaan Account?
- No. Verification of a customer through either of the mode will be sufficient provided proof of verification is available on bank’s record.
Q. In a joint account, if one person is nonresident or foreign national, can bank open a joint account of applicants?
- No. In such a case, the bank may guide non-residents or foreign nationals to open regular account instead of Asaan Account.
Q. If a joint account applicant of Asaan Account is already maintaining a regular account in BankIslami, should the bank accept him/her as joint account holder?
Q. Whether the customer can be allowed to open regular accounts in the bank in addition to the Asaan Account?
- The bank instead of allowing regular accounts to Asaan account holder may guide them to convert their Asaan Accounts into regular accounts.
Q. If a customer is already having a regular account in one bank and wishes to open Asaan Account in the same bank, will he/she is allowed to open?
- The Guidelines clearly specify that simplified approach for opening Asaan Accounts by banks is designed to extend benefits of financial services to common people who are new to bank (NTB) especially unbanked/under banked segments. Therefore, opening Asaan Accounts of regular account holders is not allowed.
Q. What if a Politically Exposed Person (PEP) requests to open Asaan Account?
- Asaan Account is designed to extend benefits of financial services to common people especially unbanked/under banked segments. The bank may guide PEPs to open regular accounts.
Q. Will the account be activated for debit transactions immediately after it is opened?
- No, Account will be opened instantly however activation will be restricted for Debit transactions until NADRA Verification is completed.
Q. In case of negative NADRA verification / Call center verification, how will the initial deposit amount be refunded to the customer?
- The customer will have to visit the branch to claim their initial deposit account in such an instance.
Q. What is a Mudaraba?
- Mudaraba is a form of partnership where one party provides funds while the other party provides expertise and management to manage the business or investment fund. The provider of funds is known as Rabbul Maal and the entrepreneur is referred to as Mudarib.The profit is shared in pre-agreed ratios, and loss, if any, unless caused by negligence or violation of terms of the contract by the Mudarib is borne by the Rabbul Maal.
Q. What makes Islami Asaan Account Shariah Compliant?
- All funds raised by BankIslami are invested in businesses which are in compliance with Shariah. Importantly, they are invested in the manner which is prescribed by Shariah. All profit & losses are pooled and distributed according to rules of Shariah between BankIslami and the depositors.
The pre-agreed profit sharing weightage is announced at the start of each month and can be obtained from the branch, Website or Phone Banker. Based on this profit sharing weightage, the Islami Bachat Account holder would be distributed the share in profit for the month at the beginning of the next month.
Q. What is the relationship between an Islami Asaan Account holder and BankIslami?
- An Islami Asaan Account holder provides funds as ‘Rabb-ul-maal’ and BankIslami invest these funds as ‘Mudarib’ i.e the fund manager. Based on this relationship, the depositors and BankIslami become beneficiaries of the profit earned. When the joint investment pool earns profit, it is distributed in the pre-agreed ratio of depositors and BankIslami. In case of the unlikely event of loss, the depositors on the pro-rata basis bears the loss whereas the Bank goes un-rewarded for all its efforts and bears all the costs incurred for doing the business.
Q. What is the profit offered on Islami Asaan Account?
- As per Shariah requirements, profit can not be committed to the customer upfront. The profit rates can only be determined after actual income from pool of assets is determined. Profit announcement at the beginning of next month will determine the profit paid. However, the sales person can share the rates announced for previous months to provide the customer with indicative rate(s).
Q. How many transactions are allowed on an Islami Bachat account?
Q. Islamic Asaan Account seems to be very similar to a Conventional Bank’s Savings Account. What is the difference?
- The funds in Islami Asaan account can only be invested in a Shariah compliant pool of assets whereas there is no such restriction on a Conventional Savings Account.
Q. How is the Customer’s profit calculated?
- Profit from the pool of Shariah compliant assets is calculated at the end of every month. BankIslami keeps a share of the profit as a Mudarib’s share. The balance profit is distributed between various categories of Customers as per predetermined weightages. The profit amount for each category is used to calculate the Profit rates for each category of Customers, which are announced at the beginning of next month
Q. Can there be a loss in Islami Asaan Accounts?
- Yes, if there is a loss in the overall pool of Shariah compliant assets the same will passed on to the Customers in the exact ratio of their investment in the portfolio. However, BankIslami is a professional Mudarib and takes utmost care in investing and extending financing to Customers.
Q. Who determines if Islamic Asaan Account is Shariah Compliant?
- The Shariah Supervisory committee of BankIslami, comprising of Mufti Irshad Ahmad Aijaz (Chairman, Shariah Supervisory Board), Mufti Javed Ahmad (Resident Shariah Board Member) & Mufti Muhammad Husain Khaleel Khail (Member, Shariah Supervisory Board) has the responsibility to oversee that all products, process and transactions pertaining to any deposit product offered by BankIslami are Shariah compliant. A Shariah Audit is also conducted periodically to ensure compliance with Shariah. The State Bank of Pakistan also conducts a Shariah Audit to ensure Shariah compliance.
Q. What is withholding tax on profit?
- Withholding tax is a tax payable to the Government of Pakistan on the profit credited in the account of a Savings or Term Account holder. The Withholding tax is 10% of the profit.