Proposed features of Riba Free Certificates

BOK's Riba Free Certificates

1. Name: They shall be called Riba Free Certificates (RFCs)
2.Basic Features of RFCs

• They shall be Called RFCs
• The Deposits shall be accepted on the basis of Musharaka principal.
• They shall be accepted on Musharaka basis.
• They shall be issued for 6 Months, One Year, 2 Years, 3 Years, 5 years.

3. Profit Calculation for R.F.Cs:

To be calculated on average monthly balance. Profits to be disbursed monthly, quarterly, annually or on maturity basis. Profits to be calculated by using weightages for each type of R.F.Cs.Profit rates and weightages shall be derived and announced on a monthly basis.

4. Profit Declaration:

• Profit declaration on Accounts will be on December 31, 2003 and subsequently monthly, that is, 1st of every month.

On pre-mature encashment the profit shall be payable equal to R.F.Cs of possible lower period plus the profits of the Riba free saving for the remaining period.