2024-07-09 00:10:00
General account funds maintained in Islamic banking or Shariah-based branches cannot be used for conventional or general banking activities. The central bank has issued instructions regarding online Islamic banking services for the bank’s Islamic banking branches and window customers of conventional branches and sub-branches.
A circular in this regard has been issued by the Banking Regulations and Policy Department of Bangladesh Bank on Monday (July 8). Guidelines for Conducting Islamic Banking Guidelines provide necessary guidelines for conducting Islamic banking activities through Islamic banks and Islamic banking branches of conventional banks.
According to the circular, with the aim of further expansion of Islamic banking activities and reaching the customer’s doorstep, Islamic banking branches of the bank, conventional branches and sub-branches of the bank can conduct online Islamic banking activities under several conditions.
The conditions are- There should be Islamic banking help desks in branches and sub-branches to provide Islamic banking services to the customers. Trained and experienced officers in Islamic banking should be posted at the Islamic banking desk. Through the Islamic Banking Desk, only the authorized Islamic Banking branches or windows of the bank can provide online financial transactions as well as deposit, withdrawal and transfer facilities as customers. Separate ‘Islamic Core Banking’ software has to be used for conducting Islamic banking activities. Islamic banking transactions will be conducted through general accounts maintained in Islamic banking branches. General account funds maintained in Islamic banking branches cannot be used in conventional banking activities. No operations related to customer account opening and investment can be done through Islamic Banking Desk. In case of conducting online Islamic banking activities through the Islamic banking desk, notices, banners, placards, festoons should be displayed at the visible places of the branches to the effect that ‘Online Islamic banking services are provided’.
The Central Bank has issued this directive under the powers given in Section 45 of the Bank Companies Act, 1991. This directive will be effective immediately.