Abstract
This paper introduces Rastin Swap Deposit account as a new banking deposit account which is interest-free and is based on Swap Contract in Rastin Banking. In this depositing by opening the deposit, the depositor is entitled to use an interest-free loan to the amount and duration that his resources have been being deposited and then return the money back to the bank. Depositor and bank agree that a combination of money and duration be selected in such a way that the products of amount and duration in both operations of depositing and loaning be the same. From the time of depositing to the first maturity (the date that depositor requests loan), the depositor is lender and bank is borrower; and from the time of the first maturity to second maturity (the date that depositor returns the money back to the bank) depositor is borrower and bank is a lender. Rastin Swap Deposit (RSD) can be issued in both local and foreign currencies.
 JEL: E43, E44, E52, E58, E62, E63
Highlights
A banking account is an agreement between a bank and a person, whereby the bank agrees to hold money and/or other assets on behalf of the person, or institution
Another type of banking resources is investment deposits which Islamic bank can use them on the base of profit and loss sharing (PLS), and bank as intermediate agent applies them in different investment projects, and the investment return will be paid to depositors according to their proportions and durations
Qard-ul-Hasanah and short-term time-deposit accounts might be connected to a banking debit card, and depositor can withdraw money by the card; though the Qard-ul-Hasanah current account holder benefits from check services
Summary
A banking account is an agreement between a bank and a person (real/legal entity), whereby the bank agrees to hold money and/or other assets on behalf of the person, or institution. Qard-ul-Hasanah deposits are cheap resources and include jari (current/checking) account, Pasandaz (saving) account which all of them are free of financial cost (payable interest) for the depositor. Another type of banking resources is investment (time) deposits which Islamic bank can use them on the base of profit and loss sharing (PLS), and bank as intermediate agent applies them in different investment projects, and the investment return will be paid to depositors according to their proportions and durations. Qard-ul-Hasanah (current and saving accounts both) and short-term time-deposit accounts might be connected to a banking debit card, and depositor can withdraw money by the card; though the Qard-ul-Hasanah current account holder benefits from check services. The financing through CD was approved by the Central Bank of Iran (CBI) in 2001 to encourage investors to make short-term deposit with transaction
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Islamic Banking and Finance Research
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
