Current Account – I (Qard) is a Shariah compliant product. It is opened to all Ethiopian citizens and permanent residents. For this deposit product the Micro finance issues cheques specifically designed for this purpose.
The product is structured under the concept of Qard. Under the Qard contract, the customer agrees to provide funds in the form of loan to the Micro finance with an undertaking by the later to pay on demand any amount outstanding in the Qard account in part or in full as and when required by the depositor. While the Micro finance reserves the right to use Qard funds for permissible business financing, no returns whatsoever shall be paid to holders of these account.
Ø Eligibility
Qard Accounts can be opened to Individuals and other legal persons recognized by law.
Individuals:
· Renewed valid ID card
· Two recently taken Pass-port-size photographs
· Renewed trade license, Tax Identification Number (TIN), and principal registration [for accounts in the name of sole proprietorship]
Legal persons:
· Renewed trade license & Principal Registration Certificate
· Registered & attested Article & Memorandum of Association
· Written application mentioning the names of signatories
· Renewed valid ID card, and two recently taken passport-sized photograph of signatories
· Tax Identification Number
Ø Features
· Account is operated by cheque, mobile and internet banking.
· No restrictions on the number and amount of deposits and withdrawals given sufficient balance maintained in the account.
· It can be opened with an initial deposit of Birr 1,000 for individuals and Birr 2,000 for legal persons. These amounts are subject to the Micro finance policy from time to time.
· In addition to the above, applicable fees, subject to periodic changes from time to time, are imposed for the following requests:
– Account closure within six months of opening
– Standing Instructions
– Authentication of Power of Attorney
– Balance confirmations
– Extra Statement of Accounts [per sheet]
– Duplicate advice[per page]– less than 2 year
– Duplicate advice[per page]- more than 2 years
– Stop payment order
– Cheque Books
· Other Qard products available:
– Qard (FCY – related Current Accounts –i)
– Qard (ECX – related Current Accounts – i)
Ø Key Terms and Conditions
· The Micro finance reserves the right to reject any deposits derived from Sharia non-compliant activities.
· ATM Card will be issued to a joint account where the signing condition is either one to sign.
· No ATM Card will be issued to a business entity except for sole proprietorship and must be signed by the owner of the sole proprietorship.
· The ATM card PIN is strictly confidential and should not be disclosed any person, damage due to failing to do so will be borne by the customer.
· The customer is required to examine all entries in the account statement and report at once to the Micro Finance any errors, irregularities or unauthorized withdrawals & missing entries.
· The Bank shall issue a deposit slip to the customer when depositing cheque or cash.
– The customer must ensure that receipts bear computer validation, be stamped & endorsed by authorized officer of the Micro finance before leaving the Micro finance premises
– Receipts are only valid as an acknowledgement of deposit if the bear such endorsement