Mudaraba Kotipati Scheme (MKS) is a mode of deposit under Mudaraba principles of Islamic Shariah. It is a profit / loss bearing product. These deposits are repayable subject to a period of notice and hence known as time deposits or time liabilities meaning thereby that these are withdraw able subject to a period of notice and not on demand. Deposits under MKS are accepted for different tenures as decided by the Bank and are entitled to receive profit on their deposit on the basis of weightage as decided by the management. A receipt is issued against each deposit under MKS. With this deposit, customers have option how quickly he/she can be a Kotipati. This product is specially designed for the parents who have already started thinking of their children’s future. This product is also suitable as Pension Plan for individuals
- The name of the Scheme is “Mudaraba Millionaire Scheme”. In short the name is “MMS”.
- This deposit product is guided by the Mudaraba principles of Islamic shariah.
- Until otherwise decided, the profit sharing ratio of Mudaraba deposits is 70:30 between Client (minimum 70%) & the bank.
- Actual profit on the MMS will be calculated at the year end on the basis of weightage fixed by the bank. Until otherwise decided weightage of MMS is 1.00
- Bank will invest the MMS fund through shariah compliant investment modes along with the other Mudaraba fund to earn profit.
- All Govt. Taxes, VAT, Excise duty etc imposed by the regulatory bodies time to time including management charges are applicable on MMS.
- MMS can be opened for 5 years, 8years, 10 years, 12 years, 15 years, 18 years & 20 years tenure or for any other tenure as approved by the bank.
Any Person, Club, Society and similar organization are eligible to open MMS account by filling up the prescribed MMS account opening form of the Bank. Bye-Laws/Regulation/Articles of Association acceptable to the bank. For entities other than Individual to be submitted along with the account opening form.