An Internship Report

On
“General Banking Activities of Al Arafah Islami Bank Limited”

Muradpur Branch, Chittagong

Supervised By
Honorable Sir
Assistant Professor
Tohid Uz Zaman Khan
Department Of Accounting
University of Chittagong

Prepared By
Ahmad Waqif
Id: 17301106
BBA 8th Semester
Session 2016-2017
 Department of Accounting
Chittagong University

Letter of Submission
Date: 30 January 2023
Tohid Uz Zaman Khan
Assistant Professor
Department Of Accounting
University of Chittagong
Subject: Prayer for submission of Internship Report on “General Banking Activities of Al Arafah
Islami Bank Limited”.
Dear sir,
With due respect and utmost veneration, it is my pleasure for having an opportunity to submit the
Internship Report on “General Banking Activities of Al Arafah Islami Bank Limited”. The
internship tenure was for six week and I enjoyed my internship period and highly appreciate the
co-operation that I have received in this regard. I put my highest endeavor to gather relevant
information in line with my internship proposal and drew it on this report. It gave me a great
pleasure to acquire a vast knowledge and practical experiences which will help me to achieve my
carrier goal in future.
May I, sincerely pray and hope that you will consider my limitations and mistakes regarding
drafting this report and will enlighten my gaps with your constructive remarks and thus oblige
me thereby.

Yours Sincerely

Ahmad Waqif
ID: 17301106
Session: 2016-17
Program: BBA
Semester: 8th

2
Department of Accounting
University of Chittagong

Student’s Declaration

I am Ahmad Waqif hereby state that the submitted internship report titled “General Banking
Activities of Al ArafahIslami Bank Limited” is exclusively prepared and updated by me after
completion of six weeks internship program in Al-ArafahIslami Bank Ltd., Muradpur Branch,
Chattogram. I solemnly conform that the report is entirely prepared for my academic requirement
not for any other purpose.

Ahmad Waqif

ID: 17301106

Session: 2016-17

Program: BBA

Semester: 8th

Department of Accounting

University of Chittagong

3
 Supervisor Declaration

I am happy to certify that this internship report titled “General Banking Activities of Al
ArafahIslami Bank Limited” prepared by a student of Bachelor of Business Administration in
Accounting belonging to Ahmad Waqif, ID: 17301106, Session: 2016-2017, for submission at
the Department of Accounting under the Faculty of Business administration, University of
Chittagong, for the Partial fulfillment of the requirements for the degree of Bachelor of Business
Administration. I certify that this work and contents of this report has been conducted under my
supervision.

Supervisor

Tohid Uz Zaman Khan

Assistant Professor

Department Of Accounting

University of Chittagong

4
 Acknowledgement

Firstly, I am grateful to the Almighty Allah for his grace and mercies and for seeing me through
the challenging moments in the internship rogram.

I acknowledge my supervisor Assistant Professor Tohid Uz Zaman Khan,Department of

Accounting, University of Chittagong, for the moral, mental support, positive criticism and
guidance.

I am grateful to the Branch Manager MD. Raihan Uddin (AVP) and PO & Manager
OperationMd. MahfuzIbne Kabir andall the officers of Al-ArafahIslami Bank Ltd. of
Muradpur Branch for their sincere cooperation and providing all the materials and information
necessary to prepare the report on “General Banking Activities of Al-ArafahIslami Bank
Ltd., Muradpur Branch.”

Special thanks to my dearest Parents for their unending support and encouragement and for
motivating me and for providing a warm and loving environment to enable me complete the
program.

Finally, I would like to thank all of my friends who have shown keen interest to make my
internship report a success and to those authors of the books, articles and Journals from whom I
took help in course of preparing the internship report.

5
 Executive Summary

The study has been conducted as a part of partial Fulfilments of BBA program of Chittagong
University. This report contains the real-life day by day working experience of different task in
General Banking Department of Al-ArafahIslami Bank Limited Muradpur Branch, Chittagong.

This report is mainly based on General Banking of the Al-ArafahIslami Bank Limited. The
overall General Banking of the Al-ArafahIslami Bank Limited has analyzed to give a clean idea
about the activities, operational strategies and performance.

The main objective of this study is to evaluate the General Banking of the Al-ArafahIslami Bank
Muradpur Branch, Chittagong. This objective is to discuss about the General Banking Business
products and services. General banking is an important unit of Al-ArafahIslami Bank Limited
under the wholesale banking division with the objective of fulfilling the need of banking
products customers. In order to prepare the report data were collected through observation during
the six-week internship period and from annual report of the Al-ArafahIslami Bank Limited. The
bank has some problems like sometime the banks software server become slow which make
delay to serve customer. The bank must overcome such problems and should satisfy their
customers with better facilities.

After completion of analysis, it is found that the overall deposits, remittance is quite satisfactory.
Marketing department is really working hard to introduce their products and services toward
every individual in low, middle or high income. So soon General Banking would be easier to
become in a better position.

At present there eleven Islamic banks operating in our country and they are making notable
contribution through performing their activities with better efforts. Al-ArafahIslami Bank
Limited is one of them.

The working environment of the Al-ArafahIslami Bank Limited Muradpur Branch Chittagong is
very conducive and friendly. The staffs are specialized in their respective fields. Each of them
works on their own and these are close supervision from the top. Each member is individually
responsible for his work.

6
 Table of Contents

Chapter-One
1.1 Introduction 10

1.2 Background of The Report 10

1.3 Objectives of the Study 11

1.4 Methodology of the Study 11

1.5 Scope of the Study 12

1.6 Limitations of the Study 12

Chapter-Two: An Overview of Al-ArafahIslami Bank Limited

2.1 Profile 13

2.2 Vision 14

2.3 Mission 14

2.4 Commitment 14

2.5 Special Features Of AIBL 15

2.6 Board of Directors 16

2.7 Corporate Information 20

2.8 General Information 22

2.9 Section Of Al ArafahIslami Bank Muradpur Branch 22

Chapter-Three: General Banking Activities Of AIBL

7
3.1 General Banking 23

3.2 Products and Services 24

3.3 Type of Account with Terms and Conditions 26

3.3.1 Al-Wadiah Current Account 26

3.3.2 Mudaraba Saving Deposit (MSD) 27

3.3.3 Mudaraba Short Notice Deposit (SND) 28

3.3.4 School Student (Minor) Mudaraba Saving Account 28

3.3.5 Farmers, Freedom Fighter Mudaraba Saving Account 29

3.4 The Deposit Scheme Provided by AIBL 29

3.4.1 Mudaraba Term Deposit (MTDR) 29

3.4.2 Mudaraba Monthly Profit Based Term Deposit Scheme (PTD) 30

3.4.3 Mudaraba Monthly Installment Based Term Deposit (ITD) 30

3.4.4 Al-Arafah Monthly Hajj Deposit (MHD) 31

3.4.5 Al-Arafah Termed Hajj Deposit (THD) 33

3.4.6 MudarabaLakhpoti Deposit Scheme (LDS) 34

3.4.7 Mudaraba Millionaire Deposit Scheme (MMDS) 35

3.4.8 MudarabaKotipoti Deposit Scheme (MKDS) 35

3.5 Account Opening Procedure 36

3.5.1 Documents Required for opening Account 37

3.6 Closing of an Account 38

3.7 Clearing House 39

3.7.1 Types of Clearing House 39

3.7.2 Member of Clearing House 39

8
 3.7.3 Bills Collection 39

3.7.4 Automatic Clearing House (ACH) 41

3.7.5 Bangladesh Automated Clearing House (BACH) 41

3.7.6 Cheque May be Dishonored from Anyone 41

3.7.7 Responsibility of the Concerned Officer for Clearing Cheque 42

3.8 Cash Service 42

3.8.1 Vault 42

3.8.2 Cash Receive 43

3.8.3 Cash Payment 43

3.8.4 Cash Packing 44

3.9 Allocation of Currency 44

3.10 Books Maintained by Cash Department 44

3.11 Remittance Services 45

3.11.1 Local Remittance 45

3.11.1.1 Pay Order 45

3.11.1.2 Demand Draft 46

3.11.1.3 Telegraphic Transfer 46

3.12 Locker Services 47

Chapter-Four: Findings, Recommendations & Conclusion

4.1 Findings 48

4.2 Recommendations 48

4.3 Conclusion 49

Reference

9
 Chapter One

1.1 Introduction
Banking is an essential industry. It is where we often wind up when we were seeking an opening
to purchase a new automobile, tuition for college or trade school, financial advice on how to
invest our savings, credit to start a new business a secure safe-deposit to safeguard our valuable
documents or maybe more commonly a checking account or overall banking industry to keep
track of when and where we spend our money.
Financial strategies for banking business are one of the foremost vital issues now in Bangladesh
because, after liberation, the government of the people's republic of Bangladesh formally took
over the change of administration of different banks. The banking institutions are the custodians
of personal savings and a strong instrument to supply credit. They oblige the resources of the
country by accepting deposits and canalize them for industrial and national development by
granting advances.
AIBL has been able to create a special image at home and abroad to introducing different
banking products in accordance with the expectation requirements of people of the country.
AIBL was the pioneer bank to allow back-to-back LC facility without any margin to the
entrepreneurs of the garment industry during the eighties, thereby helping in industry thrives to
its present position. This is not only contributed to enrich of the country’s foreign exchange
reserves, but also opened employment opportunities for a large numbers of labor force of the
country. As a pioneer in this sector, AIBL’s name will remain in golden letters.

1.2 Background of The Report

This report is a comprehensive study prepared as a requirement for the completion of the
Bachelor of Business Administration (BBA) of Department of Accounting, University of
Chittagong. The primary goal of report is to provide an opportunity for translation of theoretical
conceptions in real life situation. The program covers a period of six-week comprehensive study
about the banking activities of Al-ArafahIslami Bank in Chittagong, Muradpur Branch. This
comprehensive study titled “General Banking Activities of Al ArafahIslami Bank Limited
Muradpur Branch, Chittagong” prepared under the guideline of the supervisor Tohid Uz Zaman
Khan. As a requirement for the completion of the BBA program I need to submit this report.

10
1.3 Objectives of the study
Main Objective
To know about the practices of General Banking Business of Al-ArafahIslami Bank Limited,
MuradpurBranch,Chittagong.

Specific Objectives:
 To know about General Banking activities.
 To discuss about the product and services of General Banking Business, AIBL Muradpur
Branch.
 To evaluate General Banking performance of AIBL Muradpur Branch.
 To identify some problems of General Banking Business.
 To recommend some suggestions to overcome such problems.

1.4 Methodology
This report is prepared based on both sources of data. The sources of data are as follows: -

Primary Data:

 Conversation with officers concerned.

 Observation during internship program.
 Interviewing the clients.

Secondary Data:

 Prospectus of Al-ArafahIslami Bank Limited.

 Annual report of AIBL.
 Internet & various Publications.
 Website of the AIBL.

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1.5 Scope of the study
As I was sent to Al-ArafahIslami Bank Muradpur Branch, the scope of the study is only limited
to this branch. The report covers its overall department wise function, structure and performance.
These departments are: -

 General Banking Section.

 Consumer Loan Section.
 Remittance.

The report also covers details about the Bank.

1.6 Limitations of the study

The report may not the perfect one as there are some limitations to collect every single information of the
organization. To attain best possible outcome of the report I tried my level best, but there exist some
limitations these are following: -

 The time is insufficient to know all activities of the branch and prepare the report.
 Bank’s policy not disclosing some data and information for various reasons.
 Because of the limitations of information some personal mistake in the report.
 I carried out such study for the first time, so inexperience is one of the main constraints of the
study.

12
 Chapter 2 - An Overview of Al ArafahIslami Bank Limited
2.1 Profile

With the objective of achieving success here & hereafter by pursuing the way directed by Allah
and the path shown by His Rasul (SM), Al ArafahIslami Bank Ltd was established (registered) as
a private limited company on 18 June 1995. The inaugural ceremony took place on 27 September
1995. The authorized capital of the Bank is Tk.15000.00 million and the paid-up capital is Tk.
10649.02 million as on 31.12.2021. Renowned Islamic Scholars and pious businessmen of the
country are the sponsors of the Bank. 100% of paid-up capital is being owned by indigenous
shareholders.

The equity of the bank stood at Tk. 2348.32 crore as on 31 December 2018, the manpower was
4247 as on 31 December 2021 and the number of shareholders was 19146 as on 31 December
2021. It has achieved a continuous profit and declared a good dividend over the years. High
quality customer service through the integration of modern technology and new products is the
tool of the bank to achieve success. The bank has a diverse array of carefully tailored products
and services to satisfy customer needs.

The Bank is committed to contribute significantly to the national economy. It has made a
positive contribution towards the socio-economic development of the country with 209 branches
of which 25 is AD throughout the country.

13
2.2 Vision
To be a pioneer in Islami Banking in Bangladesh and contribute significantly to the growth of the
national economy.

2.3 Mission
 Achieving the satisfaction of Almighty Allah both here & hereafter.
 Proliferation of Shariah Based Banking Practices.
 Quality financial services adopting the latest technology.
 Fast and efficient customer service.
 Maintaining high standard of business ethics.
 Balanced growth.
 Steady & competitive return on shareholders’ equity.
 Innovative banking at a competitive price.
 Attract and retain quality human resources.
 Extending competitive compensation packages to the employees.
 Firm commitment to the growth of national economy.
 Involving more in Micro and SME financing.

2.4 Commitments
 Ours is a customer focused modern Islamic Banking sound and steady growth in both
mobilizing deposit and making quality Investment to keep our position as a leading
Islami bank in Bangladesh.
 To deliver financial services with the touch of our heart to retail, small and medium scale
enterprises, as well as corporate clients through our branches across the country.
 Our business initiatives are designed to match the changing trade & industrial needs of
the clients.

14
2.5 Special features of AIBL

 All activities of the bank are conducted according to Islamic Shariah where profit is the
legal alternative to interest.
 The Bank’s investment policy follows different modes approved by Islamic Shariah
based on the Quran & Sunnah.
 The bank is committed towards establishing welfare-oriented banking system, economic
enlistment of the low-income group of people, create employment opportunities.
 According to the need and demand of the society and the country as a whole the bank
invest money to different “Halal” business. The bank participates in different activities
aiming at creating jobs, implementing development projects of government and creating
infrastructure.
 The bank is committed to establish an economic system resulting in social justice and
equitable distribution of wealth. It is committed to bring about changes in the
underdeveloped rural areas for ensuring balanced socio-economic development of the
country through micro credit program and financing of SEM’s as well.
 According to mudaraba system, the depositors are the partners of the investment income
of the bank. About 70% of the investment income is distributed among mudaraba
depositors.
 To render improved services to the clients imbued with Islamic spirit of brotherhood,
peace and fraternity and by developing an institutional cohesion.
 The bank is contributing to economic and philanthropic activities. AIBL English Medium
Madrasha and AIBL library patronize by the bank are two such examples

15
2.6 Board of Directors

Chairman
Alhajj Salim Rahman

Vice Chairman
Alhajj Abu Naser Md. Yeahea

Member
 Alhajj Abdus Samad
 Alhajj Mohammad Abdus Salam
 Jb. Badiur Rahman
 AlhajjMahbubulAlam
 Alhajj Nazmul Ahsan Khaled
 Alhajj Abdul Malek Mollah
 Hafez Alhajj Md. Enayet Ullah
 AlhajjAhamedul Hoque
 Alhajj Niaz Ahmed
 Alhajj Mohammed Eamadur Rahman
 Alhajj Engr. Kh. Mesbahuddin Ahmed
 Alhajj Mohammed Haroon
 AlhajjLiakat Ali Chowdhury
 Alhajj Md. Anowar Hossain
 Alhajj Md. Harun-Ar-Rashid Khan

(Nominee Director of China Builders & Machineries Ltd.)

 Alhajj Md. Rafiqul Islam
 Alhajj Md. Amir Uddin PPM
 Alhajj M. Kamaluddin Chowdhury

16
Ex-Officio Director
Managing Director & CEO

Jb. Farman R. Chowdhury

Company Secretary
Jb. Md. Mahmudur Rahman

Board Of Directors
Executive Committee (EC)
Chairman
Alhajj Abdus Samad

Vice Chairman
Alhajj Mohammad Abdus Salam

Member
 Hafez Alhajj Md. Enayet Ullah
 AlhajjAhamedul Hoque
 Alhajj Engr. Kh. Mesbah Uddin Ahmed
 AlhajjLiakat Ali Chowdhury

Board Audit Committee (BAC)

Chairman
AlhajjMahbubulAlam

17
Member
 Alhajj Nazmul Ahsan Khaled
 Alhajj Mohammed Emadur Rahman
 Alhajj Md. Harun-Ar-Rashid Khan
 Alhajj M. Kamaluddin Chowdhury

Risk Management Committee (RMC)

Chairman
Jb. Badiur Rahman

Member
 Alhajj Abdul Malek Mollah
 Alhajj Mohammed Haroon
 Alhajj Md. Rafiqul Islam
 Alhajj Md. Amir Uddin PPM

Shariah Supervisory Committee

Chairman
Mufti Sayeed Ahmad Muzaddedi

Member
 Mufti Muinul Islam
 Mufti Shahed Rahmani
 Mohammad Abul Hossain Al-Azhari
 Mawlana Mohammad Abdul Hai Nadvi
 Al-Hajj A.Z.M. Shamsul Alam

Secretary
Md. Abdur Rahim Khan

18
Senior Management Team
Managing Director & CEO
Farman R. Chowdhury

Deputy Managing Director

 S. M. Jaffar
 Shabbir Ahmed
 Md. Shafiqur Rahman
 Syed Masodul Bari
 Md. Mahmudur Rahman
 Muhammod Nadim FCA
 Abed Ahmed Khan
 Md. Abdullah Al-Mamun

Director General & Principal (AIBTRI)

Md. Abdul AwwalSarker

19
2.7 Corporate Information
Name Al-ArafahIslami Bank Limited (AIBL)

Date of Registration 18 June 1995

1st Branch Motijheel Branch, Dhaka

Opening Ceremony 27 September 1995

Registered Office Peoples Insurance Building

36, Dilkusha Commercial Area

(6th-9th Floor), Dhaka-1000

Tel:PABX: 9567885, 9567819, 9569353

Fax: 88029569351

SWIFT: ALARBDDH

E-Mail: aibl@al-arafahbank.com

Number of Branch 201

Total Manpower 4217

Number of Shareholders 19146

Authorized Capital 15000.00 million

Paid up Capital 10649.02 million

Local Partnership of Capital 100%

Total Equity 25900.33 million

Total Deposit 353287.97 million

Total Investment 336890.72 million

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2.8 General Information
Al-ArafahIslami Bank Limited, Muradpur Branch
Name of The Branch

Date of Launching

Location

Branch in Charge

Number of employees
Al-ArafahIslami Bank Limited

Muradpur Branch, Chittagong

26th August 2013

Islam Tower 69, CDA Asian Highway

Muradpur, Panchlaish, Chittagong

Tel :031657966, 031651188

Fax: 03165602

MD. Raihan Uddin

Assistant Vice President

Officer: 20+

Staff: 5+

2.9 Section of the Al-ArafahIslami Bank Muradpur Branch

21
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 Chapter Three - General Banking Activities of Al ArafahIslami
Bank ltd

3.1 General Banking

General Banking is a distinctive mass-market banking system in which individual customers use
local branches of larger commercial banks, also known as retail banking or personal banking
services offered include savings and current account, mortgages, personal loans, debit/credit
cards and certificates of deposit. This is a consumer-oriented banking system where the
organization deals with the customer directly.

Though retail banking customers can get financial services retail banking is the division of the
bank which deals with retail customers which defined as the process of identifying individual
needs and satisfying them accordingly.

Basic Features:

Retail banking typically focuses on customer-oriented banking and financial service products,
including checking, savings, money market instruments, residential home loans and business
loans. Retail banks are typically located in areas that are accessible and convenient to service a
board base of prospective and existing customers.

Features of General Banking are:

 Retail banking focus on the needs of consumers versus commercial account holders.
 Retail banking utilizes Bank’s internal and external space to promote and cross-sell
services.
 It deploys savvy strategies like card services to make sure that no opportunity is missed
to service customers.
 Retail banking has a major marketing mission to increase new customers.

Objectives:
The objectives of general banking are:

 To get better living standard certain segments of customer by giving collateral free loan.
 To participate in the socio-economic development of the country.
 To diversify loan portfolio to minimize risk.
 To maximize bank profit as well as to minimize pressure on liquidity through quicker
recycling but higher yielding loan operation.

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3.2 Products and Services
Retail Banking encompasses a wide variety of products and services. These are given below:

Accounts:

1. Al-Wadiah Current Account (CD)

2. Mudaraba Savings Deposit (MSD)
3. Mudaraba Short Notice Deposit (SND)
4. School Student (Minor) Mudaraba Savings Account
5. Farmers, Freedom Fighters Mudaraba Savings Account

Deposit Schemes:

1. Mudaraba Term Deposit (MTDR)

a. 36 Months
b. 24 Months
c. 12 Months
d. 6 Months
e. 3 Months
f. 1 Months

2. Monthly Profit Based Term Deposit (PTD)

3. Monthly Installment Term Deposit (ITD)
4. Monthly Hajj Deposit (MHD)
5. Termed Hajj Deposit (THD)
6. Lakhpoti Deposit Scheme
7. Millionaire Deposit Scheme
8. Kotipoti Deposit Scheme
9. Cash WAQF Deposit Scheme (CWD)

Micro, Small & Medium Enterprise (MSME):

1. Uddog
2. Uthsob
3. Unnayan
4. Punji
5. Sonirbhar
6. Khamerbari
7. Solar Energy

23
Services:
1. ATM Card Services
2. Online Banking
3. Lockers Service
4. Automated Clearinghouse Transaction (TCH)
5. Cash Management
6. Remittance Service
7. Loan Applications
8. Other Value-added Services

3.3 Types of Accounts with Terms and Conditions

3.3.1 Al-Wadiah Current Account:

Current Account is purely a demand deposit account. Al-Wadiah Current Account is an Al-
Wadiah Agreement between Depositor & Al-ArafahIslami Bank Limited as per Islamic Shariah.
The fund deposited in the account by the client will be secured by the bank and the Bank will be
bound to refund this amount fully/partially on demand of the client. There is no restriction on
withdrawing money from the account. It is basically justified when funds are to be collected and
money is to paid at frequent interval. The bank can invest the deposited amount with other
deposits as per Al-Wadiah principles of Islamic Shariah. The weight age of the account will be
zero and the client will not bear any profit or loss.

Minimum Deposit for opening Account: Tk-2000/-

Minimum Balance in the Account: Tk-2000/-
Maintenance Charges: Tk-575/- including vat
Profit rate: Nil
Account Closing Charge: Tk-345/-

Eligibility:
 Any adult having sound mind can open this account in his/her name singly or jointly.
 Any Proprietorship/Partnership firm, Limited company (Private/Public), Educational
institution, club, association, socio-economic organization can also open this account.
Customer Benefit:
 Cheque-book facility.
 Opportunity to apply for safe deposit locker facility.
 Collect foreign remittance in both Tin certificate & Taka draft.
 Collection of cheque through clearinghouse.
 Online banking service.

24
3.3.2 Mudaraba Savings Deposit (MSD):
Mudaraba saving account is opened under the Mudaraba Principle of Islami Shariah. Under the
above principle the clients are the Shaheb-Al Mal and the Bank is Mudarib. Mudaraba saving
accounts are mainly meant for non-Trading customers who have some potential saving with
small no. of transactions taking place. More than one person can open and operate a Mudaraba
savings account. A guardian on behalf of a minor can open a Mudaraba savings account. In
which a declaration stating the date of birth of the minor should be obtained from the guardian.
Hence there is a restriction on withdrawals in a month. Heavy withdrawals are permitted only
against prior notice.

Minimum Deposit for opening account: Tk-500/-

Minimum Balance in the account: Tk-500/-
Profit Rate: 3%
Account Closing Charge: Tk-200/-
Customer Benefit:
 Cheque-book facility.
 Utility payment service.
 Collect foreign remittance.
 Transfer of fund from one branch to another.
 Collection of cheque through clearinghouse.
 Online banking service.

Some Important Points Are:

 Withdrawal amount should not be more than 1/4th of the total balance at a time and limit
twice in a week and forth in a month.
 If withdrawal amount exceeds 1/4th of the total balance at a time no profit is given upon
deposited money for that month.
 If withdrawn more than Tk-50000/- previous notice must be received.

3.3.3 Mudaraba Short Notice Deposit (SND):

Normally various big companies, organizations, Government Departments keep money in SND
account. Frequent withdrawal is discouraged and requires prior notice. The deposit should be
kept for at least seven days to get Profit. The profit offered for SND is less than that of savings
deposit. Profit is calculated based on daily minimum product and paid two times in a year.

Minimum Deposit for opening account: Tk-5000/-

Minimum Balance in the account: Tk-5000/-
Profit Rate: 3%
Account Closing charge: TK-345/-

25
3.3.4 School Student (Minor) Mudaraba Saving Account:
Bank Introduces School Student (Minor) Mudaraba Account- a saving account tailored
specifically for students the age of below 18. Special Privileges have been offered in this
account. The privilege to the minor students and encourage them to make savings in banks that
will be helpful for them to make a big savings little by little for completion of higher education.
Any guardian can open this account in the name of students below 18 years of any educational
institutions by showing identity card.

Features:
 No account maintenance fee & minimum balance.
 Fee free tiered plan for Debit card.

Eligibility:
 Age must be 11-17 years.
 Valid student ID or confirmation from appropriate authority-
Withdrawn balance: Tk-100/-

3.3.5 Farmers, Freedom Fighters Mudaraba Savings Account:

With a view to grow up savings habit among the farmers & freedom fighters to involve them in
banking transaction considering their contribution to the financial activities & to the country, to
bring them under the banking arena and to increase Financial Inclusion of the country to
encourage them to make saving in banks that will be helpful for them to make a big savings little
by little to enhance their financial strength at the time of their crucial need AIBL provide this
Mudaraba Savings Account.

Features:
 No initial deposit required.
 No account maintenance fee & minimum balance.
 Fee free tiered plan for Debit Card.

Eligibility:
 Valid National ID or confirmation from appropriate authority.
 Identification Proof like Chairman or Farmers ID card.

26
3.4 The Deposit Schemes provided by AIBL Muradpur Branch Are Given
Below

3.4.1 Mudaraba Term Deposit (MTDR):

If anyone believe in short term investment and wishes to earn profit on his/her savings, now it’s
time to invest his/her money in AIBL’s Mudaraba Term Deposit (MTDR).
Term of Deposit Profit Rate

1 Month 3%

3 Month 6%

6 Month 6.25%

12 Month 6.50%

24 Month 7%

36 Month 8%

3.4.2 Monthly Profit Based Term Deposit Scheme (PTD):

Monthly Profit Based Term Deposit Scheme (PTD) is an exciting scheme to get monthly profit
based on term deposit. The customer may be choosing 2, 3 or 5 years term scheme according to
their needs. It is an effective saving plan for individual/company and non-resident Bangladeshis
to invest.

Some special features of PTD:

 Any amount of Tk-1 Lac or its multiple may be deposited in this scheme.
 If necessary, the deposit may be cashed before maturity at a profit rate on Mudaraba
Saving Deposit.
 The scheme will have a minimum duration of 5 years.
 There will be Tk.937.50 estimated profit for each Tk-100000/- of deposit.
 Tax will be applicable on the deposited amount along with profit according to the country
law.
Scheme Profit Rate Monthly Tax 10% Net Profit
Profit

PTD 2 Years 10% 833.33 83.33 750

PTD 3 Years 10% 833.33 83.33 750

PTD 5 Years 10% 833.33 83.33 750

27
3.4.3 Monthly Installment Based Term Deposit (ITD):
Monthly Installment Based Term Deposit (ITD) is an exciting change to save monthly a certain
amount and get attractive return along with profit after tenure. Deposit can be made by
convenient monthly installment depending on the customer’s income. Duration of deposit will be
2, 3, 5, 8, 10, 12 yearlong with installment amount of either Tk-200/-, 300/-, 500/-, 1000/-,
1500/-, 2000/-, 3000/-, 4000/-, 5000/-. Any person above 18 can open this magnificent scheme.
Even an ITD can be opened on behalf of a minor.
Some Special Features:
 Installments can be deposited in any working day of month. Even advance installment
may be deposited.
 Profit will be calculated on daily basis upon one’s deposit.

The worthwhile scheme will make deposit to grow in following ration:

Tenor 2 Years 3 Years 5 Years 8 Years 10 Years 12 Years

Deposits Gross return (Deposit + Profit) At Maturiy (Projected)

200/- 5125 7937 14343 25252 34320 44278

300/- 7688 11905 21514 38288 51420 66355

500/- 12831 19957 35760 63920 85882 110784

1000/- 25632 39648 71753 127753 171632 221673

1500/- 38641 58782 107644 191607 257473 332574

2000/- 51394 79563 143598 255372 343536 443749

3000/- 77155 119477 215297 383320 515225 665632

4000/- 102916 159391 287010 511125 687093 887721

5000/- 128677 199166 358696 638930 858863 1109811

3.4.4 Al-Arafah Monthly Hajj Deposit (MHD):

Al-ArafahIslami Bank Limited Has Introduced a Monthly Installment Based Hajj Deposit for the
middle-class pious Muslims. In the scheme, Customer’s sacred wish for pilgrimage will be
fulfilled with relatively smaller monthly deposits. A variety of maturity period and installment
size will give the customer the option to make it their own affordable scheme.
28
Some Special Features of MHD:
 One can open only one Hajj account in his/her name which will be operated by the rules
of Mudaraba.
 The main attraction of the scheme is the profit based on daily stay of the customer’s
deposit. In fact, it holds 0.06 more weightage than a 3 years deposit.
 In the 2022 the estimated expenditure for Hajj is Tk-456000/- and for the upcoming years
it has been gradually incremented in the rate of 4%.
 If the depositor wants to go for Hajj before maturity period, he/she can amend the
residual amount with the deposit and fulfill his/her holy wish.
 One can prepare for the Hajj within one to fifteen years and accordingly he/she can select
the amount of monthly installment from the following chart:

Year Monthly Installment Estimated Expenditure &

Savings for Hajj

15 4556 820000

14 4732 795000

13 4904 765000

12 5183 740000

11 5455 720000

10 5833 700000

9 6296 680000

8 6563 630000

7 7083 595000

6 7986 575000

5 11458 550000

4 11000 528000

3 13944 502000

2 20000 480000

1 38000 456000

29
3.4.5 Termed Hajj Deposit (THD):

For thepeople who hold the holy desire to go for the Hajj with Onetime deposit along Bank’s
given profit there on, Termed Deposit has been introduced. After maturity, if the deposited
amount along with accumulated profit is less than the Hajj expenditure on that particular year,
the depositor can make up the residual amount at once and go for pilgrimage. If the Hajj account
is opened in the name of other person, and that person fails to go for pilgrimage for any reason,
the arrangement of “Badla Hajj” must be done. Under no circumstances the deposited amount
will be withdrawn.

Some special features of THD:

 One can prepare for the Hajj within 5 to 25 years and deposit the required amount
accordingly.
 Initial amount will be deposited under the procedure of Mudaraba. The main attraction of
the scheme is that, profit will be accumulated on the deposit in a daily stay basis. In fact,
it holds 0.10 more weightage that on 3 years deposit.
 This scheme can be opened with own name, or in the name of any predecessors of close
relatives.
 After opening this Hajj account, if someone cannot go for pilgrimage for any reason, the
provision of Badla Hajj can be given.
 A separate form has to be filled up to open THD.
 Under this scheme one can open an account in the name of a Minor.
 Tax will be applicable on the deposited amount along with profit according to the country
law.

30
 Estimated expenditure for Hajj for next 20 years after 2016 and the relative one-time
deposit will be as under.

2021 2022

Year Deposit (TK) Estimated Deposit (TK) Estimated

expenses Expenses
(TK) (TK)

5 276000 440000 288000 456000

6 270000 456000 282000 480000

7 265000 480000 280000 502000

8 262000 502000 275000 528000

9 257000 528000 270000 550000

10 250000 550000 262000 575000

11 246000 575000 255000 595000

12 240000 595000 253000 630000

13 237000 630000 252000 680000

14 236000 680000 248000 700000

15 232000 700000 240000 720000

16 225000 720000 230000 740000

17 218000 740000 225000 765000

18 210000 765000 213000 775000

19 200000 775000 205000 790000

20 192000 790000 196000 805000

31
3.4.6 MudarabaLakhpoti Deposit Scheme (LDS):

Al-ArafahIslami Bank has brought this tremendous scheme to make the dream of becoming a
“Hundred Thousand Taka” true. One can select the maturity period from 3, 5, 8, 10 or 12 years.
A single person can open more than one account in the same branch. Monthly installment can be
deposited on any working day from any branch. One can give standing order to make payment of
the installment from his savings account maintained with the branch. This eye etching scheme is
lucrative because it will accumulate profit on deposit in a daily-stay basis with a weightage 0.05
more than that of a 2 years deposit.

Period Monthly Deposit Profit Rate

3 Years 2400

5 Years 1395

8 Years 700 10%

10 Years 500

12 Years 395

32
3.4.7 Mudaraba Millionaire Deposit Scheme (MMDS):

With this excellent scheme deposit will increase to Million Taka! The main attraction of this
Mudaraba based scheme is that, profit will be accumulated on deposit in a daily basis. To make it
a more important scheme it will have a weightage of 1.05, which is 0.05 more than 3 years of a
deposit. Monthly installment can be deposited on any working day from any branch. One can
even give standing order to make payment of the installment from his savings account
maintained with the branch. Advance deposit is also possible. This scheme comes with exciting
investments facility. One can take advantage of 80% of his/her deposit as investment facility.

Period Monthly Deposit Profit Rate

3 Years 23900

4 Years 17100

5 Years 13300

6 Years 10580
10%
7 Years 8350

10 Years 5000

12 Years 3770

15 Years 2570

20 Years 1460

33
3.4.8 MudarabaKotipoti Deposit Scheme (MKDS):

With the help of kotipoti scheme, savings will rise a mammoth amount of 10 million taka.
Various installment amounts along with different maturity periods are available in this scheme,
which will definitely match customer requirement. Any person above 18 can open this
magnificent scheme. Even a MKDS can be opened on behalf of a minor, monthly installment can
be deposited from any branch on working day. One can even give standing order to make
payment of the installment from his savings account maintained with the branch. Advanced
deposit is also possible, this scheme comes with exciting facility. One can take advantage of 80%
of his/her deposit as investment.

Period Monthly Deposit Profit Rate

3 Years 238950

4 Years 170600

5 Years 132800

6 Years 105500
10%
7 Years 85800

10 Years 50200

12 Years 97100

15 Years 25620

18 Years 14750

20 Years 14500

34
3.5 Account Opening Procedure
Recently, Bangladesh Bank has been declared designed and enforced a unique format of form for
every bank. This format should hold the important document in a same manner and process
respectively from different from this practice. Accounts opening process can be as follows:

Step 1 The account should be properly introduced by anyone of the following:

 An existing Current Account of the Bank.

 Officials of the bank not below the rank of an assistant officer.
 A respectable person of the locality well known to the Manager of
the branch concerned.
Step 2  Receiving filled up application in banks prescribed form mentioning
what type of account is desired to be opened.
Step 3  The form is filled up by the applicant.
 Two copies of passport size photograph from individual are taken.
 In case of firms, photographs of all partners are taken.
 Applicant must submit required documents.
 Applicant must sign specimen signature sheet and mandate.
 Introducer’s signature and accounts number-verified by legal officer.
Step 4  Filling and signing up KYC or Know Your Customer Form.
 Filling & signing up Owner information Form.
Step 5  Authorized officer accepts the application.

Step 6  Minimum balanced is deposited-only cash is required.

Step 7  Account is opened and a cheque-book and pay-in-slip is given.

3.5.1 Documents required for opening account:

Individual / Join Account:

1. Introduction of the account.

2. Two photographs of the signatories duly attested by the introducer.
3. National ID Card or Birth Certificate (Copy of Passport).
4. Join Declaration Form (For Joint A/C only).
5. Employee’s Certificate (In case of service holder).

35
Partnership Account:

1. Introduction of the account.

2. Two photographs of the signatories duly attested by the introducer.
3. Partnership letter duly signed by all partners (Sign should be similar as stated in
Partnership Deed).
4. Partnership Deed duly certified by Notary Public.
5. Registration (If any).
6. Updated Trade License.

Proprietorship Account:

1. Introduction of the account.

2. Two photographs of the signatories duly attested by the introducer.
3. Valid copy of Trade License.
4. TIN number certificate.
5. Rubber Stamp
6. National ID Copy
7. Permission letter from D/C Magistrate (In case of Newspaper).

Limited Company:

1. Introduction of the account.

2. Two photographs of the signatories duly attested by the introducer.
3. Valid copy of Trade License.
4. Board resolution of opening account duly certified by Managing Director.
5. Certificate of Incorporation.
6. Certified (Join Stock) true copy of the Memorandum and Article of Association of the
company duly attested by Chairman or Managing Director.
7. List of Directors along with designation and specimen signature.

36
 8. Latest certified copy of form (to be certified by register of joint stock companies, In case
of Directorship change).
9. Rubber Stamp (Seal with designation of each person).
10. Certificate of Registration (In case of Insurance company-obtained from department of
Insurance from the Peoples Republic of BD.

3.6 Closing of an Account

The closing of an account may happen:

1. If the customer is desirous to close the account.

2. If the Al-ArafahIslami Bank finds that account inoperative for a long duration.
3. If the court of Al-ArafahIslami Bank issue Garnishee Order.
4. A customer may close his/her account any time by submitting an application to the
branch. The customer should be asked to draw the final cheque for the amount standing
to the credit of his/her accounts less the amount of closing and other incidental charger
and surrender the unused cheque leaves. The account should be debited for the account
closing charge etc. and the authorized officer of the bank should destroy unused cheque.
In case of joint account, the application for closing the account should be signed by the
joint account holder. The fee for closing of an account is Tk.100.

3.7 Clearing House

Clearing House is a place where the representatives of different banks together to receive and
deliver cheque with another banks.

Normally Bangladesh Bank performs the clearing house in Dhaka, Chittagong, Rajshahi and
Khulna and Bogra. Where there is no branch of Bangladesh Bank, Sonali Bank arrange this
function.

3.7.1 Types of Clearing House:

1. Normal Clearing House: Normal means the cheque value is less than 5 lac. In case of
inward the time is 10 am to 3.30 pm and for outward the time is 10 am to 12.30 pm.
2. Same Day Clearing House: Same day clearing is for the high value cheques which
amount is 5 lac or more. In case of inward the time is 10 am to 1 pm and for outward the
time is 10 am to 11.30 am.

37
3.7.2 Member of Clearing House:

Al-ArafahIslami Bank Limited is a scheduled Bank. According to the article 37(2) of Bangladesh
Bank Order, 1972 the banks which are the member of the clearing house are called as scheduled
banks. The scheduled banks clear the cheque drawn upon one another through the clearing
house.

3.7.3 Bills Collection:

In modern banking the mechanism has become complex as far as smooth transaction and safety
is concerned. Customer does pay and receive bill from their counterpart as a result of transaction.
Commercial bank’s duty is to collect bills on behalf of their customer. There are two types of
bills for collection those are:

1. Outward bills for collection (OBC): OBC means outward bills for collection. OBC exist
with different branches of different banks outside the local clearing house. Normally two types
of OBC:

a) OBC with different branches of other banks.

b) OBC with different branches of same banks.

Procedure of OBC:

1. Entry in the OBC register.

2. Put OBC number in the cheque.

3. “Crossing Seal” on the left corner of the cheque & payees account will be credited on
realization seal on the back of the cheque with signature of concerned officer.

4. Dispatch of OBC cheque with forwarding.

5. Reserve the photocopy of the cheque, carbon copy of the forwarding and deposit slip of the
cheque in the OBC file.

38
Commission for Collection:

Up to Tk.25000 0.20% at least Tk.50 + (actual postal

charge/ minimum Tk.25)

From Tk.25001 to Tk.100000/- 0.20% at least Tk.100 + (actual postal

charge/ minimum Tk.50)

From Tk.100001 to Tk.500000/- 0.15% at least Tk.200 + (actual postal

charge/ minimum Tk.50)

From Tk.500001 to Tk.1000000/- 0.10% at least Tk.750, height Tk.1000 +

(actual postal charge/minimum Tk.50)

Above Tk.1000000/- 0.10% at least Tk.1000, height Tk.3000 +

(actual postal charge/minimum Tk.50)

2. Inward bill for collect (IBC): When the banks collect bills as an agent of the collection
branch, the system is known as IBC. In this case the bank will work as an agent of the collection
bank. The branch receives a forwarding letter and bill.

Procedure of IBC:

1. IBC against OBC: To receive OBC cheque first we have to give entry in the IBC register. The
IBC number should put on the forwarding of the OBC with date.

2. Deposit of OBC amount: OBC cheque amount is put into the Deposit-sundry creditor account,
prepare debit & credit voucher of it. If the OBC cheque is honored & sent credit advice (IBCA)
with signature & advice number of the concern branch format OBC amount.

3. If the OBC cheque is dishonored, the concerned branch is informed about it.

4. Again place in the clearing house or send the OBC cheque with return memo issuing branch
according to their information.

3.7.4 Automated Clearing House (ACH):

The Automated Clearing House (ACH) is an electronic fund-transfer system run by the National
Automated Clearing House Association. This payment deals with payroll, direct deposit tax
refund, consumer bills, tax payments and many payment services.

39
3.7.5 Bangladesh Automated Clearing House (BACH)

Bangladesh Automated Clearing House (BACH) the first ever electronic clearing house of
Bangladesh has two components- The Automated Cheque Processing System (ACPS) and
Electronic Funds Transfer (EFT). Both are the systems operate in batch processing mode-
transaction received from the banks during the day are processed at a pre-fixed time and settled
through a single multilateral net figure on each individual bank’s respective books maintained
with the Bangladesh Bank. A state-of-the-art Date Center (DC) and Disaster Recovery Site
(DRS) have been established comprising of most modern software and hardware for dealing with
the operations of BACH. A Virtual Private Network (VPN) has been created between the
participating commercial banks and Data Center (DC) and Disaster Recovery Site (DRS) for
communicating necessary information related to BACH. Digital certificate has been formulated
for the first time in Bangladesh for secured data communication.

3.7.6 Cheque May be Dishonored from Any One of The Following Reasons

1. Insufficient Fund.
2. Amount in figure and word differs.
3. Cheque out of date/ postdated.
4. Payment stopped by the drawer.
5. Payee’s endorsement irregular/ illegible/ required.
6. Drawer’s signature differs/ required.
7. Crossed cheque to be presented through a bank.
8. Other specific reasons not mentioned above.

The dishonor cheque entry in Return Register & the party is informed about it. Party’s signature
required in the returned register to deliver the Dishonor Cheque. After duration, the return
cheque is sent to the party’s mailing address with Return Memo.

3.7.7 Responsibility of the Concerned Officer for The Clearing Cheque

1. Crossing of the cheque.

2. Computer posting of the cheque.
3. Clearing seal & proper endorsement of the cheque.
4. Separation of cheque 1st bank wise and then on branch wise.
5. Sorting of cheque 1st bank wise and then on branch wise.
6. Computer print 1st branch wise & the bank wise.
7. Preparation of 1st clearing house computer validation sheet.
8. Examine computer validation sheet with the deposit slip to justify the computer posting.
9. Copy of computer posting in the floppy disk.

40
3.8 Cash Service
Banks as a financial instituting accept surplus money from people as deposit given them
opportunity to withdraw the same by cheque. Cash section is an important section where cash
transactions are made. Cash sections demonstrate liquidity strength of a bank. It is also sensitive
as it deals with liquid money. Maximum concentration is given while working on this section.
Tense situation prevails if there is any imbalance in the cash account. There are various systems
maintain by cash officer that is under:

 Vault
 Cash Receive
 Cash Payment
 Cash Packaging

3.8.1 Vault

The cash department is the riskiest department of the bank. This is the section where tight
security is required to avoid any accidents. There is a limit to be amount of cash that case counter
can carry, carrying of excess cash is avoided for safety reasons. If there is any surplus in the cash
then excess amount should sent to the Bangladesh bank or from the head office or other banks.

Vault Limit: Taka-50000/-

Insurance: Taka-50000/-
Teller Limit: Taka-30000/-

3.8.2 Cash Receive

When client deposit cash in the bank, the bank officer on receipt of the cash and pay in slip/
credit voucher shall:

 Check and count the cash received.

 Make sure that the amount in word and figure in the deposit slip are same.
 Check the account title and number.
 Both deposit slip is on order.
 Depositor’s signature in the slip.
 Receive seal in the slip is a must.
 Write the domination of the currency at the back of the pay in slip or the credit voucher
and affix stamp in the slip.
 Enter particulars in slip/ credit voucher in the receiving cash officer book.

41
  At last, send the pay in slip/ voucher to the deposit department or to the respective
department.
 Deposit slip must be signed by the respective officer.
 Carbon copy of the deposit slip must be handover to the client with proper seal and
signature.

3.8.3 Cash Payment

Cheques, demand draft, pay orders, pay slips and debit cash vouchers etc. received from various
departments for payment of cash to customers/payees. Prior payment of cash it is officer’s duty
to make sure that the cheque or the instrument has been genuinely passed. The following
common precaution is thoroughly practiced before honoring a cheque:

 Check of it is an open or crossed cheque.

 The branch name in the cheque.
 The date in the cheque is very crucial. Cheques are normally valid six months and pre-
date cheques are asked to present after the date given.
 Taka in words and figure of the cheque is same.
 Balance in the account is available.
 The apparent tenor of the cheque. Whether any figure, date or anything has been altered
into cheque presented. If any, then the respective officer must check whether the client is
making his signature of alternation or not.
 The specimen card signature and signature in the cheque should match.
 Signature of recipient is obtained on the reverse of the cheque.

3.8.4 Cash Packing

After the banking hour cash is packed according to the denomination. Notes are counted and
packed in bundles and stamped with initial.

3.9 Allocation of Currency

Before starting the banking hour all tellers give requisition of money through “Teller Cash Proof
Sheet”. The head teller writes the number of the packet denomination wise in ‘Reserve Sheet’ at
the end of the day, all the notes remained are recorded in the sheet.

 Between the bank and different centers.

 Between the banks and central bank in the same country.
 Between central bank of different customers.

42
3.10 Books Maintained by Cash Department
1. Movement Registers.
2. Vault Register: In this book the amount of available in the branch is maintained.
3. Cash Remittance Register.
4. Cash Position Book.
5. Cash Receive Payment Register: This register keeps record of all incoming and outgoing
cash.
6. Daily Cash Balance Register: This is the book where cash balance is recorded by
counting the notes and coins that are physically available. The balance in this book is
compare with vault register, which should be the same. In case there is an error, then the
figure would not match but if no discrepancy is found then anything is worried about.

Other Registers:

1. Cash in safe, counter & transit.

2. Balance with another certificate.
3. Insurance file.
4. Key Register.
5. Stamp in hand register.

Automatic Machine: Cash section has two automatic machines-

 Money counting Machine: With the help of this machine officers can easily count the
money.
 Money Detector Machine: This machine helps officer to find out fake money.

3.11 Remittance Services

Sending money from one place to another through some charges is called remittance. To pay or
revived money of customers in the form of remittance from one place to another, from one
person to another inside and outside the national boundry is earning source of every bank. Al-
ArafahIslami Bank Limited Muradpur Branch operates the local remittance to serve the
customer. In addition, the service is an important part of country’s payment system. Through this
service, people can transfer their funds from one place to another place very quickly.

43
3.11.1 Local Remittance

Sending money of customers in the form of remittance from one place to another from one
person to another inside the national boundary is another earning source of every bank. As being
a non-ad branch Al-ArafahIslami Bank Limited Muradpur Branch operates the local remittance
to serve the customer. In addition, the service is an important part of country’s payment system.
Through this service, people can transfer their funds from one place to another place very
quickly. There are several techniques for collecting local remittance. These are:

1. Pay Order (PO)

2. Demand Draft (DD)
3. Telegraphic Transfer (TT)

3.11.1.1 Pay Order (PO)

Pay order gives the payee the right to claim payment from the issuing bank. It is payment from
issuing branch only within the clearing house area of issuing branch. Payment is made through
clearing.

 Examine gentility of the pay order.

 Enter into Pay Order register and give contra entry.
 Debit, if the fund is sufficient then it is ok for payment.
 Examine gentility of the Pay Order.

AIBL charges different amount of commission on the basis of payment order amount the bank
charges for pay order are given in the following chart:

Total Amount of PO Commission Vat

Up to Tk. 10000.00 Tk.15.00 Tk. 3.00

Tk. 10001 - Tk. 100000/- Tk. 25.00 Tk. 4.00

Tk.10001 - Tk. 100000/- Tk. 50.00 Tk. 8.00

Tk. 1000001 - Tk. 500000/- Tk. 100.00 Tk. 15.00

3.11.1.2 Demand Draft (DD)

A demand draft is an instrument containing an order by the issuing branch upon another branch
known as drawer branch, to pay a certain sum of money to the payee. Commission for demand
draft is 0.1% of the principal amount and vat 15% of the commission amount and telex charge is
Tk.50.

44
3.11.1.3 Telegraphic Transfer (TT)

Issuing branches request another branch to pay specified money to the specific payee on demand
by Telegraphic / Telephone.

The basic three types of local remittance are discussed below:

Points Pay Order Demand Draft Telegraphic Transfer

Explanation Pay order gives the Demand draft is an Issuing branch request
payee right to claim order of issuing another branch to pay
payment from the bank on another specified money to the
issuing bank. branch of the same specific payee on
bank to pay demand by
specified sum of Telegraphic/Telephone.
money to payee on
demand.

Payment From Payment from Payment from Payment from ordered

issuing branch only ordered branch. branch.

Generally Used to Within the clearing Outside the clearing Anywhere in the
remit fund house area of house of issuing country.
issuing branch. branch. Payee can
also be the
purchaser.

Payment process of Payment is made 1. Confirm that the 1. Confirm issuing

the paying bank through clearing. DD is not forged branch
one.
2. Confirm payee
2. Confirm with account.
sent advice.
3. Confirm amount.
3. Check the test
code. 4. Make payment.

4. Make payment. 5. Receive advice.

Charge Only Commission. Commission Telex Commission

Charge. Telephone.

45
3.12 Locker Services
Al-ArafahIslami Bank Limited has been providing Safe Deposit Locker Services for a long
period of time. At present five of its fifty branches have these facilities. The numbers rent and
other information is given in the following table:

Locker Sizes Security/ Unit (Taka) Rent/ Unit (Taka)

Large 10000.00 2500.00

Medium 10000.00 2000.00

Small 10000.00 1500.00

Locker Security Deposit (Refundable): Tk.2500/-

Locker Key Replacement Cost (Per placement): Tk.1000/-

The valuables kept in the lockers are also insured with coverage of the following amount under a
GROUP INSURANCE POLICY:

Locker sizes Insurance Coverage (Taka)

Large 150000.00

Medium 100000.00

Small 50000.00

46
 Chapter Four- Findings, Recommendations and Conclusion

4.1 Findings
After conducting study and analyzing the collected data the following data have been found out:

 The numbers of Mudaraba Saving Accounts are increasing moderately.

 The numbers of Al-Wadiah Accounts are increasing slowly.
 Sometimes accounts opening application forms are not properly filled up and
documents are not properly collected.
 Many customers have no knowledge about their deposit schemes and offerings.
 Sometimes the banks software server becomes slow which make delay to serve
customer and clearing cheque.
 The management imposes a target deposit to its employees that makes a pressure for
them.
 The cash counters are congested which sometime delay day to day teller activities.
 The management provides training but the facility isn’t sufficient especially for the
lower-level officers.
 Lack of online service modernization.

4.2 Recommendations
According to the findings of the study following recommendations have been made:

 Management should focus on the marketing aspects to let customers know about deposit
schemes and offering.
 Bank should offer more facilities to the customers.
 Management must require relevant documents from new customers. It should be very
helpful both Bank and Customer.
 They need to provide more training facilities, more computerized system and strong
network connection.
 Management should ensure proper maintenance of the premises.
 Target deposit of the employees should be removed.
 They need systematic process in cash counter to give customer well and fast facilities.
 They should also focus on the marketing aspects to let customers know about their
Remittance Services.
 Call center can be established for receiving complaints and suggestions.

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4.3 Conclusion
Through the concept of Islamic Banking is no longer new thing in the world. Observing its
operational success more than 500 Islamic Bank and financial institution in about 75 countries
have been established globally. At present there are eleven Islamic Banks operating in our
country and they are making notable contribution through performing their activities with better
efforts, Al-Arafah Islamic Bank Limited is one of them.

Al-ArafahIslami Bank Limited is a unique combination of Shariah & Islamic Banking. Among
non-government commercial banks, Al-ArafahIslami Bank is milestone for economic
development. It has been playing an important role to eradicate the unemployment problem in
Bangladesh.

The bank is committed to run its activities as per Islamic Shariah. People are getting more
benefit from the dealings of Islamic Banking because here interest is not charged and there is no
possibility of interest to be converted into principal. It cannot take part in call money market.
Mudaraba, Musharaka are the mode of investment in Islamic Banking. The fund of bank strongly
depends on deposits and it has a big influence through the number and amount of deposit. Al-
Arafah Islamic Bank Limited has a better opportunity to have a huge deposit account to increase
it fund from the savers. Credit card and ATM cards can play an important role in capturing the
unutilized money the bank has to give huge concentration on better customer service and
satisfaction.

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References
1. MD. Raihan Uddin, Assistant Vice President, Manager of Muradpur Branch Al
ArafahIslami Bank ltd.

2. Md. MahfuzIbne Kabir, PO & Manager Operation of Muradpur Branch Al

ArafahIslami Bank ltd.

3. Annual Report of Al ArafhIslami bank 2021

4. www.aibl.com.bd

5. Brochures of Al ArafahIslami Bank ltd.

6. www.bb.org.bd

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