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Basic banking account

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Basic banking account

  1. 1. Islamic Banking Islamic banking refers to a system of banking or banking activity that is consistent with the principles of Islamic law (Sharia) and its practical application through the development of Islamic economics. Sharia prohibits the payment of fees for the renting of money (Riba, usury) for specific terms, as well as investing in businesses that provide goods or services considered contrary to its principles (Haraam, forbidden). While these principles were used as the basis for a flourishing economy in earlier times, it is only in the late 20th century that a number of Islamic banks were formed to apply these principles to private or semi-private commercial institutions within the Muslim community.  History of Islamic banking Classical Islamic banking During the Islamic Golden Age, early forms of proto-capitalism and free markets were present in the Caliphate, where an early market economy and an early form of mercantilism were developed between the 8th-12th centuries, which some refer to as "Islamic capitalism". A vigorous monetary economy was created on the basis of the expanding levels of circulation of a stable high-value currency (the dinar) and the integration of monetary areas that were previously independent. A number of innovative concepts and techniques were introduced in early Islamic banking, including bills of exchange, the first forms of partnership (mufawada) such as limited partnerships (mudaraba), and the earliest forms of capital (al-mal), capital accumulation (nama al-mal), cheques, promissory notes, trusts (see Waqf), startup companies, transactional accounts, loaning, ledgers and assignments Organizational enterprises similar to corporations independent from the state also existed in the medieval Islamic world, while the agency institution was also introduced. Many of these early capitalist concepts were adopted and further advanced in medieval Europe from the 13th century onwards.  Riba The definition of riba in classical Islamic jurisprudence was "surplus value without counterpart." or "to ensure equivalency in real value" and that "numerical value was immaterial."
  2. 2. During this period, gold and silver currencies were the benchmark metals that defined the value of all other materials being traded. Applying interest to the benchmark itself (ex natura sua) made no logical sense as its value remained constant relative to all other materials: these metals could be added to but not created (from nothing).Applying interest was acceptable under some circumstances. Currencies that were based on guarantees by a government to honor the stated value (i.e. fiat currency) or based on other materials such as paper or base metals were allowed to have interest applied to them. When base metal currencies were first introduced in the Islamic world, no jurist ever thought that "paying a debt in a higher number of units of this fiat money was riba" as they were concerned with the real value of money (determined by weight only) rather than the numerical value. For example, it was acceptable for a loan of 1000 gold dinars to be paid back as 1050 dinars of equal aggregate weight (i.e., the value in terms of weight had to be same because all makes of coins did not carry exactly similar weight).
  3. 3. Al Baraka About us With a vision for unrivaled services, dedication to Islamic principles of banking, increasing network points, and innovative product line, Al Baraka Bank (Pakistan) Limited is committed to the Banking Industry in Pakistan. Al Baraka Bank (Pakistan) Limited (ABPL) is the result of a merger between Al Baraka Islamic Bank Pakistan (AIBP), the branch operations of Al Baraka Islamic Bank (AIB) Bahrain and Emirates Global Islamic Bank (Pakistan). The merged entity commenced operations on November 1st 2010. The merger, a first in the Islamic Banking sector in Pakistan, positions ABPL to play an important role in further growing an industry which has witnessed tremendous growth over the last 12 years. With assets in excess of Rs. 85 billion; a workforce of 1400 professionals and a network of 110 branches in 58 cities and towns across Pakistan, Al Baraka Bank (Pakistan) Limited is devoted in providing customers with a range of Shariah compliant products to suit their banking needs. Faced with growing challenges in this rapidly developing market, ABPL strongly relies on its ability to be an effective and efficient market player through renewed focus on superior customer service, development of Islamic alternatives to conventional financing facilities, and strict adherence to Shariah rulings and principles. Al Baraka Bank (Pakistan) Limited, offers a wide array of Islamic financing products such as Murabaha, Ijarah, Musharakah and Islamic Export Refinance etc., catering to a diverse cross- section of the economy including the Corporate, SME and Consumer sectors. Moreover, various Shariah compliant deposit schemes are also available for customers to invest their funds in, along with a variety of other ancillary services such as online branch banking, Al Baraka Union Pay Debit Card, SMS banking, InterBank Funds Transfer, E-Statements, electronic statement of accounts, safe deposit lockers and utility bill payments.
  4. 4. United Bank Limited About us United Bank Limited was incorporated in Pakistan with the registered office in Karachi, and the principal office situated in Islamabad. UBL has assets of over Rs.1 trillion and a solid track record of over fifty years - in addition, the bank operates 1281 branches all over Pakistan including 22 Islamic banking branches, and 1 branch in Karachi export processing zone and 18 branches outside Pakistan. The banks ordinary shares are listed on all three stock exchanges in Pakistan and its global Depositary Receipts (GDRs) are on the list of the UK Listing Authority and the London Stock Exchange Professional Securities Market. These GDRs are also eligible for trading on the international Order Book System of the London Stock Exchange. Join us in a world class journey and let us serve you better, because at UBL You come first Basic Banking Account Basic Banking Account will be a current account. It’s a current account or no profit and no loss account Non Islamic Element The interest factors are a non-Islamic in this account. These account money are used is interest base business Convert In To Islamic Account This account convert in to Islamic if Funds received are on the basis of Qardh and are used only in Shariah compliant business. Saving Account Non Islamic Element The interest factors are a non-Islamic in this account Convert In To Islamic Account This account convert in to Islamic if Funds are received on the basis of Mudaraba and are used only in Shariah compliant business.
  5. 5. UBL UniZar Foreign Currency Savings Account UBL UniZar Foreign Currency Savings Account is ideal for those customers and individuals who wish to maintain a secure foreign currency transactional account which also provides a return. It is available in 5 leading currencies: US Dollar, British Pound, Euro, Saudi Riyal and UAE Dirham. Non Islamic Element The interest factors are a non-Islamic in this account Convert In To Islamic Account This account convert in to Islamic if Funds are received on the basis of Mudaraba and are used only in Shariah compliant business. UBL UniZar Foreign Currency Current Account UBL UniZar Foreign Currency Current Account is ideal for those customers and individuals who wish to maintain a secure foreign currency transactional account. It is available in 5 leading currencies: US Dollar, British Pound, Euro, Saudi Riyal and UAE Dirham. Non Islamic Element That currency involved in interest base business Convert In To Islamic Account This account convert in to Islamic if Funds are received on the basis of Qardh and are used only in Shariah compliant business. Business Account To us reliability means unmatched accessibility, convenience and freedom.Access your account from over 1300 online branches in over more than 400 cities all across Pakistan for unlimited online transactions. With UBL Business Partner, your account moves with you. Wherever you go, we will follow. Enjoy total convenience at any online branc Non Islamic Element The interest factors are a non-Islamic in this account Convert In To Islamic Account If Business Account base on a Mudarabah based and Investment Account providing the necessary tools to individuals and corporate customers to transact their entire business activities. Then that account is convert in Islamic way
  6. 6. UBL Profit certificate of deposit COD Now you can earn a higher income on your surplus cash by investing it in Certificate of Deposit which helps you earn extra income with your hard earned money, while providing absolute trust and security. Non Islamic Element The interest factors are a non-Islamic in this account Convert In To Islamic Account If Profit certificate of deposit COD base on a Mudarabah and are used only in Shariah compliant business based then it’s convert in to Islamic way UBL First is a savings account UBL First is a savings account opened on behalf of a child in the name of the father or mother or a court-appointed guardian and the minor. UBL First is designed especially for children and aims at becoming every child's first bank account, helping inculcate a savings habit. It is tailored to meet a child's future financial needs in a planned and convenient manner. Non Islamic Element The interest factors are a non-Islamic in this account Convert In To Islamic Account Minor Saving Account is designed specifically for junior/children under the age of 18 years if accordance the rules of Mudarabah and Funds are received on the basis of Mudarabah and are used only in Shariah compliant business. then it’s convert in to Islamic way UBL Address Home Loan Facility With a maximum financing limit of 70% you can easily buy a house or apartment that best fits your requirements. So go ahead and start the search for your dream home because with easy and affordable installments you need not think of renting a house when you've got UBL Address. Non Islamic Element The interest factors are a non-Islamic in this account Convert In To Islamic Account If UBL Address Home Loan Facility base on a Shirkat-ul-Milk (Musharaka) Agreement and it’s signed between you customer and the Bank., then Bank and customer will become
  7. 7. joint owners (partners) in the Musharakah property. When customer have purchased all units of Bank, customer become the sole owner with a free and clear title to your home. UBL Drive UBL Drive is a unique auto financing product which offers you features, options and flexibility unmatched by any other bank, because at UBL, you come first. Both fixed and floating rates are offered to our customers. Non Islamic Element The interest factors are a non-Islamic in this account Convert In To Islamic Account If UBL Drive Loan Facility base on a Ijarah Agreement and it’s signed between you customer and the Bank. Ijarah means 'to give something on rent’. It is a Shariah compliant alternative to Conventional leasing where Bank acts as a Lessor and you act as a Lessee. The Lessor (Bank) allows the Lessee (You) to use the vehicle owned by the Lessor in return for a monthly rent. Comparison of Product Al Baraka product comperes with UBL Bank UBL Bank Al Baraka Bank Basic Banking Account Funds received are on the basis of Qardh and are used only in Shariah compliant business. Al Baraka Basic Banking Account The ABPL Basic Banking Account is based on the Islamic principle of Qarz, whereby the customer is the lender and the bank is the borrower. Customer funds are invested with utmost care in halal business ventures only, and are payable, on demand, with neither any addition and/or penalty. BankIslami's Islami foreign currency account is based on the Islamic principle of Qarz (loan) whereby you are the lender and the Bank is the borrower. These funds are invested in halal business
  8. 8. Savings Account Funds are received on the basis of Mudaraba and are used only in Shariah compliant business. With a minimum of only PKR 100000 the rupee saving account can be opened under musharakah agreement. The profit earned is calculated every month. And if the client maintains a monthly balance of PKR 10000 the client is eligible for the profits the will be disbursed every month Business Account If Business Account base on a Mudarabah based and Investment Account providing the necessary tools to individuals and corporate customers to transact their entire business activities. Then that account is convert in Islamic way ventures only so that you are 100% sure that your funds are managed in a Shariah compliant manner. The funds are payable to you on demand as and when required with neither any addition nor penalty. Al Baraka Savings Account Al Baraka saving account is based on the Islamic concept of Mudarabah. Under this arrangement the customer is Rab-ul-Maal (Investor) and the bank is Mudarib (Fund Manager). Customer deposit is invested in profitable business ventures which are legal and Shariah compliant. The profit/loss is shared on a pre determined ratios. As Fund Manager, the bank is entitled to a part of the profit, whereas profit distribution amongst the depositors and shareholders is made according to the weightages assigned to their investment at the beginning of each month. Al Baraka Business Plus Al Baraka Business Plus is based on the Islamic concept of Mudarabah. Under this arrangement the customer is Rab-ul-Maal (Investor) and the bank is Mudarib (Fund Manager). Customer deposit is invested in profitable business ventures which are legal and Shariah compliant. The profit/loss is shared on a pre determined ratios. As Fund
  9. 9. UBL First Is A Savings Account Minor Saving Account is designed specifically for junior/children under the age of 18 years if accordance the rules of Mudarabah and Funds are received on the basis of Mudarabah and are used only in Shariah compliant business. then it’s convert in to Islamic way UBL Address Home Loan Facility If UBL Address Home Loan Facility base on a Shirkat-ul-Milk (Musharaka) Agreement and it’s signed between you customer and the Bank., then Bank and customer will become joint owners (partners) in the Musharakah property. When customer have purchased all units of Bank, customer become the sole owner with a free and clear title to your home. UBL Drive If UBL Drive Loan Facility base on a Ijarah Agreement and it’s signed between you customer and the Bank. Ijarah means 'to give Manager, the bank is entitled to a part of the profit, whereas profit distribution amongst the depositors and shareholders is made according to the weightages assigned to their investment at the beginning of each month Tifl-Young Savers Account Al Baraka Tifl- Young Savers Account is offered on the basis of Mudarabah principles of Islamic Banking. Mudarabah is a special kind of partnership where one partner gives money to another for investing in Shariah compliant avenues. The investment comes from the first partner who is called Rabb-ul-mal (Customer), while the management and work is an exclusive responsibility of the other, who is called Mudarib (Bank). ABPL Auto Ijarah Al Baraka Islamic Auto Finance is one of the most distinctive Shariah compliant products
  10. 10. something on rent’. It is a Shariah compliant alternative to Conventional leasing where Bank acts as a Lessor and you act as a Lessee. The Lessor (Bank) allows the Lessee (You) to use the vehicle owned by the Lessor in return for a monthly rent. offered by Al Baraka Bank (Pakistan) Limited

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