Terms and Conditions for Opening of an Account:

1. 1. Definitions

   1. 1.1. The following words and expressions shall, unless the context otherwise so requires, have the following meanings:
      1. a) Account means basic banking, savings or current (Pakistani Rupee or foreign currency) account(s) maintained by the customer with the Bank.
      2. b) Account Opening Form means the form prescribed by the Bank, as modified or amended from time to time, which is to be completed by the customer for opening an account.
      3. c) ATM Services means services offered by the Bank to the account holders as per the ATM Terms and Conditions prescribed by the Bank from time to time.
      4. d) Business means business, transactions and products approved by the Shariah Advisor, for the purpose of making investments from funds available in the pool(s).
      5. e) Business Day means a day when the relevant branch of the Bank is open to conduct banking business and any day not specified as non-business day for banks by SBP.
      6. f) Business Income means total income of a pool from Business (es) for a given period.
      7. g) Customer means any individual person, firm, company or any other association or organization, maintaining an account with the Bank, and includes (where appropriate) any person authorized by the customer to give instructions on customer’s behalf in relation to customer’s account.
      8. h) Direct Expenses means all direct costs and expenses attributable to a pool in relation to a Business for the purpose of deriving Business Income.
      9. i) Hiba means a part of profit that is due to the Bank, which the Bank may relinquish, on the date of distribution, in favor of depositors.
      10. j) Internet Banking Service means the service to be provided by the Bank, which would enable the customer to obtain information from and give instructions to the Bank by logging-on to the Bank’s Website.
      11. k) Internet Banking ID means the unique identifier which is issued to the customer by the Bank, and which would enable the customer to access the Internet Banking Service.
      12. l) Investment Risk Reserve (IRR) means the amount appropriated by the Bank out of the income of investment account holders, after allocating the Mudarib share on the basis of Tabarru, in order to cater against future losses for investment account holders.
      13. m) Loss / Net loss means loss of respective Pool(s) after charging all direct expenses and write offs (if any), which shall be calculated on an accrual basis and in conformity with the generally accepted accounting principles applied on a consistent basis.
      14. n) Mudaraba means a form of partnership where one party provides the funds while the other provides expertise and management. Any profits accrued are shared between the two parties on a pre-agreed basis, while loss is borne by the provider of the capital.
      15. o) Mudarib means the party in a Mudaraba agreement that provides the expertise and management for managing the funds of the person who provides the funds.
      16. p) Musharaka means a relationship established under a contract by the mutual consent of the parties for sharing of profits and losses in the joint business. It is an agreement under which the Bank provides funds which are mixed with the funds of the business enterprise and others. All providers of capital are entitled to participate in management, but not necessarily required to do so. The profit is distributed among the partners in pre-agreed ratios, while the loss is borne by each partner strictly in proportion to respective capital contributions.
      17. q) Password means an alphabetical and / or numeric code initially assigned to the customer by the Bank and includes any other code as may be subsequently adopted by the customer for accessing the Bank’s Internet Banking Service.
      18. r) PIN means Personal Identification Number initially assigned by the Bank at the time of issuance of ATM Card and includes such other code as may be subsequently adopted by the customer for accessing the Bank’s ATM Services.
      19. s) Profit Equalization Reserves (PER) means the amount appropriated by the Bank, from net income of the pool on the basis of Tabarru, in order to maintain a certain level of return in investment for investment account holders and increase owners’ equity.
      20. t) Profit / Net profit means profit of respective Pool(s) after charging all direct expenses and write offs (if any), which shall be calculated on an accrual basis and in conformity with the generally accepted accounting principles applied on a consistent basis.
      21. u) Rab-ul-Mal meansthe party in a Mudaraba agreement that provides the funds and accordingly shares the accrued profit with the Mudarib on a pre-agreed basis and solely bears the loss (if any) faced by the Mudaraba.
      22. v) SBP means the State Bank of Pakistan, established under the State Bank of Pakistan Act, 1956, and includes it successors in- interest.
      23. w) The Bank means BOP – Islamic Banking Division having its principal office at 10-B, Block II Main Boulevard, Gulberg III, Lahore Pakistan.
      24. x) The Bank’s Website mean BOP’s website at www.bop.com.pk as modified and / or re-designed from time to time.
      25. y) The Terms or "These Terms" means these and any supplementary terms and conditions, as amended from time to time.

2. 2. Opening an Account

   1. 1.1. The following words and expressions shall, unless the context otherwise so requires, have the following meanings:
   2. 2.1. The Account shall be opened upon submission of duly filled-in Bank's prescribed Account Opening Form properly in the manner provided and on submitting all such documents and information as may be requested by the Bank. Further, the Bank reserves the right to demand such relevant documents and information even after opening of account as deemed necessary. In the event of failure of the Customer to provide such documents and information, the Bank may, at its sole discretion withhold operations of the Account or close such Account.
   3. 2.2. The Bank will not refuse opening of account for prospective clients who meet the requirements laid down in the Prudential Regulations, other instructions issued by SBP from time to time and Bank's own policies.
   4. 2.3. The Account shall be opened with an initial / minimum deposit as stipulated by the Bank from time to time unless specifically relaxed / exempted by SBP.
   5. 2.4. A distinctive number will be allotted to every account and this number should be quoted in all correspondence relating to the account and at the time of making a deposit or withdrawal. The Bank reserves the right to change the Account Number or any part of it in order to meet its book keeping / administration requirement. However, intimation of change in the account number shall be sent to the account holder.
   6. 2.5. The Accounts may be opened singly in one name or jointly in two or more names.

3. 3. Minor Account

   1. 3.1. Deposit may be accepted from minors provided the account is opened and operated through a guardian.
   2. 3.2. The Account will be in the name of a minor who is the beneficial owner. The title of account will be "Child's Name (MINOR)/Guardian's name (GUARDIAN)". The Account may be opened and operated by the guardian till the minor attains the age of majority. Operation in the account will be stopped on the date the minor attains age of majority and credit balance in the account will be paid to the erstwhile minor by closing the account. The erstwhile minor may open a new account in his/her name. Orders of the court shall, however, be followed in case the legal guardian is appointed by the court.

4. 4. Joint Accounts

   1. 4.1. If an account is opened in the names of two or more persons, the balance to the credit of that account and any accruals thereon shall at all times belong to the persons who are signatories to the account opening form. Such persons shall also be jointly and severally liable for all liabilities incurred in relation to the account and the services.
   2. 4.2. The customer authorizes the Bank to pay or deliver to either or survivor(s) of the person(s) in whose names the account has been opened, or the legal representative(s) of such survivor(s), any monies, securities or properties standing to the credit of the joint account or held by the Bank.
   3. 4.3. In the case of joint accounts, following further provisions shall also apply:
      1. a) Each of the signatory to the account shall be deemed to have authorized and empowered the other signatories:
         1. i) to endorse and deposit for credit to such account, any and all cheques, drafts, notes or other instruments or the payment of money, payable or purporting to belong to other person(s) named in the account, and should any such instrument(s) be received by the Bank without being so endorsed, the Bank is authorized in the absence of any specific instruction to the contrary, to endorse the same on customer's behalf and deposit it to the credit of such account; and
         2. ii) To issue any cheques, drafts, notes or other instruments that may be drawn against such account.
      2. b) If prior to acting on instructions received from a signatory, where a joint account is operated on the basis of either or survivor of the signatories, the Bank receives contradictory instructions from any joint account holder(s), then the Bank may, at its absolute discretion, choose to act on the instructions of all the signatories, notwithstanding that any relevant existing mandate or instructions require otherwise.
      3. c) In the event the Bank receives conflicting instructions from the signatories to a joint account, the Bank shall be entitled to suspend the operation of such account, without any prior notice.
   4. 4.4. In the event of a death of any one or more of the account holders having operational instructions, in the case where the credit balance in a joint account is payable either to any one or more of the account holders or survivors of them; in the absence of a contract to the contrary, the credit balance will become payable to the survivor(s) without reference to the legal heirs of the deceased person or persons. In all other cases, the credit balance will be payable to the legal heirs of the deceased account holder(s) along with the remaining account holder(s) as per bank's procedure.

5. 5. Cheque Books

   1. 5.1. Applications for issuance of Cheque Books should be made on prescribed requisition slips and thereafter for further issuance of Cheque Books on the requisition slip inserted in the Cheque Book already issued.
   2. 5.2. Where a person is sent to take delivery of a Cheque Book on behalf of the account holder, such person must be in possession of a written authority form the account holder to do so as well as a Cheque Book requisition slip.
   3. 5.3. The account holders in their own interest and to reduce the risk of fraud are requested to keep their Cheque Books under lock & key and to ensure that their Cheque Books do not get into unauthorized hands. In case of loss or theft of Cheque book, if the customer reports the concerned Branch before payment, he will not be liable for any loss or damages. However, in any case, bank is liable to observe due diligence in good faith.
   4. 5.4. Loss of Cheque leaves or Cheque Book or the Cheque Book Requisition Slip should be immediately notified by the Account holder to the Bank in writing.
   5. 5.5. If the Cheque book is not collected within sixty (60) days of the issuance, it will be destroyed by the bank at customer's cost.
   6. 5.6. Cheques or other negotiable instruments deposited by the customer that have been dishonored may be returned by post or special messenger to the customer at his last known mailing address with the Bank at the risk and expense of the customer concerned, unless prior arrangement otherwise has been made for its collection.

6. 6. Statement of Account

   1. 6.1. The statement of account will be dispatched to the account holder at periodical intervals, as per frequency stipulated by SBP, and charges as per rules set by SBP.
   2. 6.2. The statement of accounts will be sent in following manner:
      1. a) Where closing balance in an account, as on 30 June and 31 December, is less than 10,000/- free of charge statement of account will be dispatched at least once in a calendar year within one month from the close of calendar year (i.e., by 31st January). Statement of accounts for balances less than 10,000/-, which is dispatched through regular post, customers may notify any discrepancies in statement of account within 45 days from the date of issue, after which Bank's statement will be considered final.
      2. b) Where closing balance in an account, as on 30 June or 31 December, is greater than or equal to 10,000/-, free of charge statement of account will be dispatched twice in a year on, six monthly bases, within one month from the close of half year (i.e., June 30 and December 31).
   3. 6.3. However, no statement of account shall be dispatched to dormant / inoperative accounts during the period of dormancy / in-operation till such time accounts are reactivated. However, statements to all such accounts shall be dispatched on due dates, starting from the period preceding or equal to the date account was flagged dormant.
   4. 6.4. The Bank will take care to see that credit and debit entries are correctly recorded in all accounts but in case of any error, the Bank shall be within its right to make the correct / adjusting entries and recover any amount wrongly paid or credited and inform the account holder subsequently. The Bank shall not be liable for any loss or damage to the account holder due to such errors or corrections thereof.
   5. 6.5. Duplicate copies of statement of accounts shall be provided by the Bank by debiting the customers’ account as per the schedule of charges.

7. 7. Deposits

   1. 7.1. All monies / instruments to be deposited in an account should be accompanied by a pay-in-slip showing the title and number of the account. The entry of transaction shall be authenticated by putting Bank's stamp under the joint signatures of two officers of the Bank on the pay-in-slip and counterfoil thereof. The depositor should satisfy himself / herself that the transaction has been so verified on the counterfoil.
   2. 7.2. All cheques to be deposited for credit to the account should be payable to the account holder and be "crossed" before deposit. Also particulars of the cheques (name of the Drawee Bank, Cheque number etc.) should be correctly written both on pay-in-slip and the counterfoil thereof. The Bank shall not be responsible in case of any loss where the above requirements are not complied. In case of delay or loss occasioned in collection of cheques, the bank will follow-up with the concerned for swift resolution.
   3. 7.3. Remittance received through mail will be acknowledged by return post. An account holder who does not receive such acknowledgement should communicate with the Bank immediately.

8. 8. Withdrawals

   1. 8.1. Withdrawals from the account can be made only by means of Cheque supplied by the Bank in printed form or any other mode approved by the Bank. Cheque should be written in un-vanish able / un-erasable ink and be signed as per specimen signature(s) supplied to the Bank and any alterations in the instrument must be authenticated by the drawer(s) under his / her / their full signature(s) as the case may be.
   2. 8.2. Illiterate customers will not be liable for cuttings and alterations on cheques unless duly authenticated.
   3. 8.3. The credit balance in an account in the name of two or more persons will be payable as per Operational instructions given / signed by all the account holders in Account Opening Form. However, the possible cases can be as under:
      1. a) Either or any one or more of them or the survivors of them; or
      2. b) All of them.
   4. 8.4. Withdrawals will not be allowed against postdated (payable on any future date) and stale (06 months after issuance date) cheques and against un-cleared funds.
   5. 8.5. In the case of 8.3 (a) above; if payments from an account are at any time forbidden by any one or more of the account holders, the amount will only be payable on the discharge of all the account holders or the survivor or survivors of them.

9. 9. Dormant Account

   1. 9.1. All depository accounts will be classified as dormant which remains in-operative for a period of one year or as prescribed by SBP from time to time.
   2. 9.2. In case of:
      1. a) Current / BBA account, after passing one year in dormant status, if there is still no operation in the account for continuous period of two years; the account shall be classified as inoperative.

   3. 9.3. This entails certain restrictions on the operation of such accounts and for reactivation, the account holder must in person request for a change of status and will produce original CNIC or Passport or Pakistan Origin Card (POC) or National Identity Card for Overseas Pakistani (NICOP) and Photo copy for Branch / Bank attestation.
   4. 9.4. After passing further 8 years in inoperative status, in current / BBA account and 7 years in inoperative status, in saving accounts i.e., if an account is not operated upon by a customer for a continuous period of ten years; it will be classified as unclaimed deposit account and will be surrendered to SBP as per the provisions of Section 31 of the Banking Companies Ordinance 1962.

10. 10. Closing of Account

    1. 10.1. The Bank may at its sole and absolute discretion close any account, which is not being operated in a manner satisfactory to the Bank or for any other reason whatsoever, with or without any prior notice to the customer. The Bank also reserves the right to terminate, at the Bank’s sole discretion, any other type of relationship(s) with the customer, e.g. lockers, safe custody, relationship cards, etc. at any time without assigning any reason.
    2. 10.2. In case the account is closed the balance will be remitted to the depositor at the address given by the account holder(s).
    3. 10.3. Upon closure of an account, the customer must return to the Bank any unused cheques relating to customer’s account. Alternatively, the customer must confirm in writing to the Bank’s satisfaction that the unused cheques have been destroyed.
    4. 10.4. The Account Holder(s) wishing to close the account must withdraw the outstanding balance, if any, after depositing account closing charges as stipulated by the Bank.
    5. 10.5. All accounts where there is no customer's initiated operation since two years and have nil balances, shall be closed by the bank without giving any notice.

11. 11. Death / Bankruptcy of Account Holder(s)

    1. 11.1. In case of death / bankruptcy, the Bank will stop operation in the account immediately, after the receipt of official notice or as and when become aware of it from any other reliable source.
    2. 11.2. In the event of a death of any one or more of the account holders of Joint account:
       1. a) In case the credit balance in an account in the name of two or more persons, will be payable to either or any one or more of account holders or the survivors of the account holders, as instructed by all the account holders in Account Opening Form (as per Operational instructions), and in the absence of a contract to the contrary, the credit balance will become payable to the survivor(s) without reference to the legal heirs of the deceased person or persons.
       2. b) In all other cases, the credit balance will be payable to the legal heirs of the deceased account holder(s) along with the remaining account holder(s) as per bank's procedure.

12. 12. Current Account

    1. 12.1. Current Account is opened on the basis of Qard Hasna and offers the account holder the flexibility to withdraw funds from time to time at his / her convenience.
    2. 12.2. The depositors shall be made aware that no profit shall be payable on Current Account. The deposits received by the Bank under Current Account can be used by the Bank as its equity at its sole discretion for its business purposes including investments and financings under Shariah compliant modes in any manner the Bank considers appropriate after approval of its Shariah Advisor.

13. 13. Basic Banking Account (Current Account)

    1. 13.1. The minimum initial deposit for this type of account will be Rs. 1,000/ or as per amount prescribed by SBP.
    2. 13.2. The account will be non remunerative account, i.e. no profit shall be paid on the deposit in Basic Banking Account (BBA).
    3. 13.3. No limit on minimum balance. In cases, where balance in BBA remains 'nil' for a continuous six month period, such accounts will be closed.
    4. 13.4. No fee will be charged for maintaining BBA.
    5. 13.5. Free of charge ATM withdrawals from the bank's own ATMs. In case of withdrawal from BBA through the ATM machines of other banks, bank shall recover charges as per schedule of charges.
    6. 13.6. Statement of account will be issued once in a year, duplicate copies of the statements of accounts will be provided on request upon payment of relevant charges.

14. 14. Profit and Loss Sharing Savings Account & Riba Free Certificates

    1. 14.1. The relationship between the Bank and customers holding savings and / or Riba Free Certificate (RFC) shall be based on the principles of Mudaraba, where the Bank shall be Mudarib and customers shall be Rab-ul-Maal. Further, the relationship is based on unrestricted Mudaraba arrangement.
    2. 14.2. Funds deposited by the customer in saving and / or RFC shall be collected in pool(s) of funds. The Bank may, at its sole discretion, commingle customer’s funds with that of the other depositors in the pool and / or with the funds of the Bank.
    3. 14.3. The funds in such pool(s) shall, at the Bank’s sole discretion, be deployed in Shariah compliant modes such as Murabaha, Ijarah, Musharaka or any other Islamic modes of financing and or investment.
    4. 14.4. The updated and prevailing Mudarib share and Profit Weightages applicable to Savings Account and other investors in the Mudaraba pool will be available at the Bank’s website, displayed in the Bank’s branches, may be obtained from the Bank from time to time and/or shall be communicated to the Customer in any other mode, whether electronic or otherwise, in accordance with the Bank’s prevailing practice.
    5. 14.5. Shares of Profit / Losses for each calendar month shall be determined under the policies as mentioned in section 15 below and credited to the customers’ account within eight (8) working days after end of each period, for the preceding profit allocation period or on such dates or intervals which the Bank may determine and calculate as per policy in vogue.
    6. 14.6. The Customer will not participate in the management or in decisions concerning investment of the Mudaraba funds and by signing this contract investor understands that investor has given unrestricted right to Bank / Mudarib to invest these funds.
    7. 14.7. In addition to the above:
       1. a) PLS Savings Accounts may also be opened by charitable institutions for Provident Funds and other funds of benevolent nature by Local Bodies, Autonomous Corporations, Companies, Associations, Societies, Educational Institutions, Firms etc. and in all other cases where such accounts are required to be opened under the orders of Competent Court of Law; and

       2. b) Not more than one PLS Savings Account may be opened at a branch in any one name except in the name of a parent or guardian for more than one child or for keeping funds of specified nature category by an entity, with the Bank's prior approval.

15. 15. Distribution of Profit & Loss

    1. 15.1. In case, where the Bank’s equity is comingled with the customer’s fund in a pool; the Net Income / loss of pool would be allocated between the Bank’s equity and customer’s fund in proportion to the respective share in pool.
    2. 15.2. Profit and loss on the Mudaraba based deposits would be computed and distributed on the basis of average daily balance in customer’s account during the profit computation period.
    3. 15.3. At the end of each calendar month; Bank and the pool members shall share Profit or Loss accruing from Business(es) after deducting all direct expenses pertaining to the Mudaraba at actual in the following manner:
    1. a) The Bank’s share in the Profit, in the capacity of Mudarib, would be admissible only on profit allocated to depositors’ funds from the pool’s net income and would be determined on the basis of a predetermined percentage, capped at a maximum of 50% of the profit allocated to depositors’ funds from the pool’s net income. The said percentage shall be determined by the Bank before the beginning of each period and made available for the customer’s information on the Bank’s Website and on notice boards in the Head Office and branches. Loss, if any, shall be distributed amongst pool members under the principles of Mudaraba on the basis of pool members’ ratio of investment.
    2. b) Balance of profit after deducting the Bank’s share determined under clause 15.3 (a) above; shall be distributed amongst the pool members on the basis of predetermined weightages. Losses, if any, shall be distributed amongst the pool members under the principles of Mudaraba on the basis of pool members’ ratio of investment.
    3. c) In case of loss has been incurred by the Business and was caused by the gross negligence or willful default of the Bank, the Customer will not be liable to share in such a loss as contemplated by clause 15.3 (c) above.
    4. 15.4. For the purpose of smoothening of profit the bank may create Profit Equalization Reserve (PER) or give Hiba to depositors by reduction of its share of profit sharing ratio.

16. 16. PER, IRR and other provisions

    1. 16.1. PER, IRR and other provisions may be created, maintained and utilized as follows:
       1. a) The Bank may at its sole discretion as per SBP rules, in order to maintain a certain level of return on investment of depositors, provide for a PER, after approval of the Shariah Advisor, an amount from the net income of the pool.
       2. b) The Bank may fully or partly utilize the amount of PER to improve the returns to the depositors during periods when the pool’s profits are below market expectations.
       3. c) Only existing depositors will qualify for share in PER. As such, the depositor agrees that he / she / it shall not have any right to claim the share in PER (if any) after the withdrawal of the deposit.

       4. d) PER will be created on the basis of Tabarru from pool contributors.
       5. e) Ratio of PER will be displayed on the notice board of the Branches before start of the relevant period.
    2. 16.2. Hiba, may be provided to depositors by the Bank through reduction its profit, for the following purpose:
       1. a) In order to account for displaced commercial risk, the Bank in the capacity of Mudarib may relinquish a part of the profit that is due to the Bank, in the favor of depositors, only after the balance in the PER is fully utilized.
    3. 16.3. The Bank may at its sole discretion as per SBP rules, in order to mitigate risk of future losses to investment depositors, provide for an Investment Risk Reserve (IRR), after approval of the Shariah Advisor, an amount from the depositors profit i.e. distributable profit net of mudarib share.
    4. 16.4. IRR will be created on the basis of Tabarru from pool contributors.
    5. 16.5. Only existing depositors will qualify for share in IRR. As such, the depositor agrees that he / she / it do not have any right to claim the share in IRR (if any) after the withdrawal of the deposit.
    6. 16.6. Allocated but unpaid profits which are not reinvested as per the mutual agreement will be recognized as liability of the Bank.
    7. 16.7. 5% of all dividend and capital gain on shares income shall be transferred to Dividend Income provisioning and Capital Gain/Loss provisioning respectively at the time of liquidation of the pool, part of the provisioning corresponding to interest income of the company’s total income during that period as declared in published accounts (whether audited or unaudited) shall be paid in charity and remaining income, if any shall be reversed so as to become part of net income of the pool. The remaining portion thus reversed shall be based on Tabarru from the pool contributors at the time of creation of such provisioning.
    8. 16.8. Clauses pertaining to calculation and distribution of Profit / Losses in this document shall be in accordance with the prevailing laws of Pakistan and the applicable rules and regulations issued by the State Bank of Pakistan from time to time that are not in contradiction with the rules and principles of Shariah and the profit and loss distribution policy framework approved by the Shariah Advisor and the Board of Directors of the Bank.

17. 17. Profit on Closing / Withdrawal of Deposits from Saving Account

    1. 17.1. In the event that the entire deposit in a Saving Account is withdrawn at a time during the month when the Mudaraba profits for that profit calculation period cannot be ascertained, the profit amount in such case shall be calculated using the profit rate applicable for the immediately preceding profit calculation period and paid to the customer as soon as possible following which the account will stand closed.
    2. 17.2. This payment of profit will be based on the principle of Takharuj i.e. such allocation and payment to the customer shall be in full and final discharge of Bank’s obligations to the customer and no further claim whatsoever shall be made or entertained.
    3. 17.3. In consideration of receiving the profit amount calculated using the profit rate for the immediately preceding profit calculation period, the customer agrees to waive any right he / she / it may have to receive the profit amount calculated in accordance with the profit rate for the then applicable profit calculation period and agrees that any such profit amount shall be applied to the benefit of the remaining account holders, and the date such amount or amounts are paid shall be the profit payment date for that account.

18. 18. Foreign Currency Accounts

    1. 18.1. Foreign Currency current and saving accounts may be established in US Dollars and / or such other currencies as may be determined by the Bank, as allowed by relevant regulations in force from time to time.
    2. 18.2. The Terms and Conditions contained in clause 15 herein above applicable to saving account shall also apply to Foreign Currency saving accounts.
    3. 18.3. No profit is paid on any current account balance in respect of Foreign Currency accounts.
    4. 18.4. Foreign Currency accounts, both current and saving are opened and maintained subject to Foreign Exchange Control regulations and directives of the Government of Pakistan, or any of its organs / agencies and the SBP from time to time.

19. 19. Indemnity and Liability

    1. 19.1. The Bank shall use its best endeavors to provide smooth and efficient services to the customers. Notwithstanding the same, the customer hereby agree and confirm to hold the Bank and its officers, directors, employees and representatives, agents and contractors, completely harmless and indemnified, from and against any and all costs, losses, damages, liabilities, payments and obligations and expenses (including but not limited to reasonable legal costs) incurred, suffered, sustained, paid or imposed upon the Bank, arising out of, inter alia:
       1. a) Bank acting upon the customer’s written or verbal instructions to stop payment, hold mail and / or to act on any other instructions, including standing instructions issued by the customer to the Bank from time to time.

       2. b) Any claim by the customer or any third party concerning the amount, transfer, delivery or non-delivery of any product requested through any of the Bank’s services or any other matter relating to the services.
       3. c) Any action taken by the Bank in reliance upon customer’s instructions which are:
          1. i) revealed to be unauthentic, unauthorized or erroneous; and / or
          2. ii) discovered to be fraudulent.
       4. d) Any taxes or other levies paid or due to be paid by the Bank on payments made or to be made by the customer, through or pursuant to the Bank’s services.
       5. e) Customer’s act, omission, error, neglect, or default or those of the customer’s employees, agents, correspondent or participating bank or of their employees and agents.
       6. f) Subject to these Terms, any amendment to or variation in customer’s instructions.
       7. g) For any instruction not complied with, due to reasons beyond the Bank’s reasonable control.
       8. h) Any loss arising out of unauthorized or fraudulent access to the customer’s account caused as a result of customer’s negligence or failure to take reasonable care.
       9. i) Loss or theft of cheque book or the ATM Card.
    2. 19.2. The customer acknowledges that nothing in these Terms and Conditions shall be construed as being a warranty or a representation by the Bank of any guaranteed profits in respect of funds mobilized on the basis of Mudaraba.

    3. 19.3. The customer is aware that all deposits in the Mudaraba pool are exposed to potential losses arising out of a loss incurred in respects of assets in the Mudaraba pool. Any losses incurred by the Mudaraba pool in a Profit Allocation Period shall be borne solely by the Customer (in the capacity of Rab-ul-Maal). If however, the Bank has also invested its own funds in the Mudaraba pool as Shareek then such losses shall be shared between the Customer and the Bank proportionately in accordance with the respective amounts invested by the Customer and the Bank.

20. 20. ATM Services

    1. 20.1. The Bank may, at its sole discretion, and subject to applicable charges issue ATM Card to the customer to access the ATM Service.
    2. 20.2. The ATM Service shall be subject to the ATM Terms and Conditions.
    3. 20.3. The customer will be responsible to keep itself fully informed and updated with regard to ATM Terms and Conditions.
    4. 20.4. In case of a joint account with either-or-survivor(s) operating instructions, the ATM Card shall be issued only in the name of one signatory to the account.

21. 21. Miscellaneous

    1. 21.1 Zakat and Taxes

       1. 21.1.1 Zakat and Withholding Tax and / or other tax (es) levied from time to time shall be deducted as per prevailing laws of Pakistan. All amounts recovered by the Bank as additional amounts in relation to a Saving Account shall be paid by the Bank into the Charity Fund.
       2. 21.1.2 ZAKAT is leviable on the assets as described in the Zakat & Ushr Ordinance 1980 (as amended from time to time) on balances which will fall within the definition of zakatable assets as notified by the Government of Pakistan on Valuation date each year, provided Declaration (original / attested photocopy) for exemption from compulsory deduction of zakat is filed on the prescribed proforma (CZ-50) in the prescribed manner one month preceding the valuation date except in the case of newly opened accounts.

    2. 21.2 Charges and Expenses

       1. 21.2.1 Charges for services provided by the Bank shall be levied according to the Schedule of Charges. Charges for transaction on foreign currency accounts will be recovered in foreign currency only.
       2. 21.2.2 The Bank will not obtain any prior permission from the customer for debiting customer’s account for any expenses, fees, commission, profit, Zakat, tax, stamp duty, excise duty, etc. payable to the Government (or what so ever) arising out of any dealing between the Bank and the customer.
       3. 21.2.3 The Bank may, without any further express authorization from the customer debit customer’s account maintained with the Bank for the amount of any or all losses, claims, damages, expenses or other amounts which the Bank may suffer, sustain or incur as a consequence of acting upon any of the customer’s instructions.

    3. 21.3 Amendment in Rules

       1. 21.3.1 The Bank reserves to itself the right to amend, alter or add to any or all of these Rules through an advertisement in a newspaper or by means of a notice exhibited in the Bank’s premises as thirty (30) days advance notice prior to such changes take effect there after such amended, altered or additional Rules shall be deemed to be binding on all concerned. However, in case of any dispute, matter should be referred to SBP and the decision of SBP will be final and binding in that case.

    4. 21.4 Legal

       1. 21.4.1 These Terms shall be solely governed by the substantive and procedural laws of Pakistan. Courts all over Pakistan shall have exclusive jurisdiction in respect of any dispute relating to any matter contained herein.

    5. 21.5 Stop Payments

       1. 21.5.1 All stop Payment instructions will be accepted in writing and signed by the account holder(s).

    6. 21.6 Change of Address

       1. 21.6.1 Any change in the address of the account holder should immediately be communicated to the Bank in writing so that any future correspondence may be made to the new address. The post office and the agents for delivery should be considered agents of the account.

    7. 21.7 Data Protection and Disclosure

       1. 21.7.1 The Bank shall make endeavors to preserve the secrecy of the account of the customer. Nevertheless, the customer hereby expressly authorizes the Bank to disclose the information if such is required by any investigating agency, any government agency or such person as the Bank feels that such disclosure is necessary.