Accounts Terms & Conditions

1. CURRENT/CHEQUEING ACCOUNT

(a) Cheques shall not be drawn on the Bank except on forms supplied for the Accounts.

(b) No alterations whatsoever shall be made on cheques. The Bank reserves the right to dishonour and return cheques which bear any alteration (whether or not countersigned by the drawer),is mutilated, illegible or has technical errors, eg post-dated cheque, inconsistent words and figures.

(c) The Customer shall not use pencils or erasable ink pens to complete cheques. The Customer owes a duty to the Bank not to facilitate fraud or forgery. The Bank shall not be liable to the Customer for any loss suffered by the Customer arising from the Customer’s negligence or disregard of the precautions in handling cheques. The above precautions are not exhaustive and Customer shall exercise care and caution in handling cheques and operating the Accounts.

(d) No overdrawing is allowed unless the Customer has made prior arrangement with the Bank. Interest on overdrawing a Current Account shall be calculated based on daily debit balances at the rate determined by the Bank and shall be paid on demand.

(e) The Bank reserves the right to dishonour any cheques issued by the Customer if there are insufficient funds in the Customer’s Account (“Bad Cheque”).The Bank may close or impose restrictions/conditions on all or any of the Accounts if not conducted satisfactorily or has been listed with the Dishonoured Cheques Information System (DCHEQS) or with any credit bureau or any organisation or corporation.

1.1 INTEREST-BEARING CURRENT ACCOUNT (IBCA)

(a) Subject to fulfilment of the Bank’s eligibility criteria, the Customer shall enjoy interest on daily account closing ledger balance in excess of the account balance threshold, at such rate(s) as may be specified by the Bank from time to time.

(b) Interest will be calculated daily and credited by month end.

(c) The Bank reserves the right to amend the eligibility criteria, the account balance threshold, interest rate and other terms from time to time. Other terms and conditions governing current accounts shall apply.

 

2. SAVINGS ACCOUNT (Applicable to Individuals only)

 

2.1 PASSBOOK

(a) The Customer must present his savings account passbook for withdrawal at the Bank’s counter. Entries in the passbook will either be machine validated or entered manually.

(b) The passbook is not conclusive as to the current balance of the savings account as deposits may be made or items charged without any entry being made in the passbook.

(c) If the passbook is lost, mislaid or destroyed, the Bank may allow the balance in the account to be withdrawn or transferred to a new account subject to such conditions set by the Bank.

(d) YOUNG SAVERS ACCOUNT: The Bank may impose restriction on the number of times or amount that can be withdrawn in a calendar month or year. The Bank may convert the Account to an appropriate product when the accountholder or its beneficiary exceed the age set by the Bank for young savers account.

(e) SAVINGS PLAN: The Customer shall maintain the minimum balance for the minimum duration specified by the Bank and comply with other conditions of the savings plan. If the Account is closed before expiry of the minimum duration or the minimum balance is not maintained, the Bank may deduct a percentage of the interest from the account balance.

 

3. FIXED DEPOSIT

 

3.1 GENERAL TERMS FOR FIXED DEPOSIT

Fixed Deposits can be placed for tenures in multiples of one to 60 months or such other tenure permitted by the Bank. If the maturity date falls on a non-Business Day, any renewal/disposal instructions by the Customer will be carried out on the next Business Day. Premature withdrawal may be allowed subject to the terms and conditions set by the Bank.

In the event the account for crediting the principal and/or interest of the Fixed Deposit on maturity date is closed, the amount to be credited will be renewed as a Fixed Deposit for the same tenure, if instructions are not received from the Customer before the maturity date.

 

3.2 COMMODITY MURABAHAH GENERAL INVESTMENT ACCOUNT-i (CM GIA-i) / TIME DEPOSIT ACCOUNT-i (CM TD-i)

(a) This product is based on the Shariah principle of Tawarruq concept. The Customer appoints the Bank as the agent to acquire commodity (“Acquisition by Agent-Bank”) at the Customer’s Purchase Price, and authorises the Bank to execute transactions for and on behalf of the Customer. Wa’d: the Bank undertakes that on Acquisition by Agent-Bank, the Bank will purchase the commodity from the Customer at the Bank’s Purchase Price payable on deferred term at the end of a specified period (“Tenure”).

(b) The commodity will be Crude Palm Oil (“CPO”) or such other Shariah compliant commodity as the Customer and the Bank may agree. The Customer hereby acknowledges that the Bank shall have no liability whatsoever to the Customer if the Acquisition by Agent-Bank could not proceed on the proposed date due to trading of the commodity is not available for whatever reasons including non-availability of any trading limit(s). If the Acquisition by Agent-Bank does not occur on the proposed date, then the Bank may at its sole discretion perform the Acquisition by Agent-Bank at the immediately subsequent day where the trading of the commodity is available.

(c) The Bank is under no obligation whatsoever to effect any purchase of commodity until and unless the Customer’s Purchase Price has been paid to the Bank for the Acquisition by Agent-Bank in clear and transferable fund, such fund may be debited or transferred from a Current Account-i or such other account(s) maintained with the Bank (collectively, “Account(s)”) or with other financial institution or any other manner as agreed by the Bank. The Customer hereby authorises the Bank to debit the Customer’s Purchase Price from the Account(s). On Acquisition by Agent-Bank, the ownership of the commodity immediately passes to the Customer.

(d) The Customer and the Bank acknowledge that the commodity comprised in an Acquisition by Agent-Bank shall be capable of physical delivery. The Customer may request physical delivery of the commodity provided that the Bank has received such request at the time it receives the Customer’s instruction for Acquisition by Agent-Bank, and the Bank has received payment for the Customer’s Purchase Price. If the Bank does not receive payment for or instructions for physical delivery of the commodity, the Bank is expressly authorised by the Customer to dispose of the commodity at such time and in such manner as the Bank may decide and the Customer shall pay the Bank all losses, damage, costs and expenses incurred or sustained by the Bank as a result of the purchase of commodity under any Acquisition by Agent-Bank as agent of the Customer or as a result of the Customer’s failure to comply with the Customer’s obligations to effect the payment of the commodity to the supplier.

(e) Subject to this Clause 3.2(e), the Bank shall pay the Bank’s Purchase Price in full to the Customer at the end of the Tenure. Subject to the provisions of Shariah, the Customer may, at any time during the Tenure request early settlement of the Bank’s Purchase Price. In such event, in consideration of the Bank’s agreement to make an early settlement of the Bank’s Purchase Price, the Customer agrees to grant a rebate (ibra’) on the Bank’s Purchase Price which shall be calculated as follows:

CM GIA-i

(i) If the early settlement is on or prior to the completion of three (3) months from the time of payment of Customer’s Purchase Price:

The rebate to be equivalent to the difference between the Bank’s Purchase Price and Customer’s Purchase Price;

(ii) If the early settlement is after three (3) months or more from the time of payment of Customer’s Purchase Price:

For business and corporate banking Customer, the rebate shall be calculated based on the formula below:

Profit Rate x Customer’s Purchase Price x D/N

Where,
D is number of days from date of early settlement to end of Tenure
N is 365

For consumer banking Customer, the rebate shall be calculated based on the formula below:

Bank’s Purchase Price – ((P x 50%) / 100 x Customer’s Purchase Price x D / N) + Customer’s Purchase Price

Where,
P is Profit Rate
D is number of days in completed months from date of early settlement to end of Tenure
N is 365

CM TD-i

The rebate to be equivalent to the difference between the Bank’s Purchase Price and Customer’s Purchase Price.

(f) For early settlement (other than by consumer banking Customer), the Customer shall also pay for all holding, handling and brokerage fees (collectively, “Charges”) actually charged by any third party broker for sale and purchase of commodity pursuant to the commodity murabahah. The Bank shall be entitled to deduct the Charges from the Bank’s Purchase Price before paying the balance to the Customer.

 

4. FOREIGN CURRENCY ACCOUNT

 

4.1 GENERAL TERMS FOR THE FOREIGN CURRENCY ACCOUNT

(a) The terms and conditions under this Clause 4.1 is applicable for both Call and Time Deposit Accounts (collectively referred to as “FCA”) opened with the Bank.

(b) The Customer will comply with all the following conditions, overnight limits and regulations which are subject to change by Bank Negara Malaysia from time to time. The Bank may impose any other conditions and/or overnight limits for purpose of controlling and monitoring.

(c) The Bank may reject or reverse any deposits or proceeds in the absence of clear and specific instructions or which may result in a breach of the aforesaid conditions or overnight limits (including caused by crediting of interest or fluctuations in exchange rate).

(d) The Customer is required to notify the Bank of the following in the operation of the FCA:-

(i) of change in the volume of export proceeds in the case of exporters, change in the qualifying conditions that affect the prescribed overnight limits and any breach of the qualifying conditions and/or overnight limits imposed by Bank Negara Malaysia; and

(ii)prior to the remittance by telegraphic/mail/electronic transfers or otherwise of any proceeds to the Customer’s FCA.

(e) Withdrawals from any FCA in a currency other than the currency of that FCA shall be at the conversion rate determined by the Bank. The Bank is under no obligation to accept deposits or allow withdrawals of foreign currency notes.

(f) The Bank may receive for the credit of the FCA any cheque, draft, mail and telegraphic transfer, negotiable instrument and any monies payable to the Customer PROVIDED THAT the aforesaid instruments are acceptable to the Bank. Proceeds of any Ringgit Malaysia or other foreign currency cheque, draft or negotiable instrument and monies payable to the Customer shall be credited to the FCA at the conversion rate to be determined by the Bank.

(g) The opening and operation of the FCA is also subject to the banking practices and laws of Malaysia, Exchange Control Act 1953 and Regulations, rules of the Association of Banks in Malaysia and the rules and regulations of other regulatory bodies.

 

4.2 FOREIGN CURRENCY CALL ACCOUNT ("FCCA")

(a) An FCCA may be opened in any currency other than Ringgit Malaysia, acceptable to the Bank. Interest shall be credited monthly at the Bank's rate and will be calculated on the daily balances at the end of each day or such other intervals as may be determined by the Bank. If a minimum amount is required, no interest is payable if the credit balance falls below the minimum amount.

(b) No interbranch transactions or overdrawing are allowed on the FCCA. Withdrawals may be made by giving not less than 24-hours notice in writing (or by such other means permitted by the Bank).

 

4.3 FOREIGN CURRENCY TIME DEPOSIT ACCOUNT ("FCTDA")

(a) An FCTDA may be opened in any currency other than Ringgit Malaysia, acceptable to the Bank. Deposits into the FCTDA will be for a term and rate as agreed with the Bank. The Bank reserves the right to impose limits on the amounts and term of deposit.

(b) Withdrawal of deposits can be made only on maturity and at the branch of deposit. The Bank may allow premature withdrawal of deposits but any loss/penalty charges for such withdrawals shall be borne by the Customer.

(c) Withdrawals may be made by giving not less than two (2) Business Days (or such other period as may be stipulated by the Bank) before maturity.

(d) The Bank is under no obligation to renew the term of the deposit or to remit such matured sums to the Customer or to any of his accounts until instructions are given by Customer.

(e) If the maturity date falls on a non-Business Day, any renewal/disposal instructions by the Customer will be carried out on the next Business Day.

 

5. GENERAL TERMS FOR HOUSING DEVELOPMENT ACCOUNT ("HDA")

(a) The Customer agrees that the HDA shall be operated in accordance with the Rules and Regulations for the control and regulation of such accounts under the laws governing housing developers in West Malaysia, Sabah and Sarawak.

(b) The HDA is a non-chequeing current account i.e. there will be no cheque book issued by the Bank for the HDA. The Customer shall ensure that there are sufficient and cleared funds in the HDA to meet all requests and at no time will the HDA be overdrawn.

(c) All withdrawals from the HDA shall be supported by such certification and documents as required by the Rules and Regulations together with the duly completed withdrawal application form and within such limits as may be imposed by the Rules and Regulations.

(d) The Customer may with approval in writing from the controlling authority under the applicable Rules and Regulations:-

(i) withdraw all (surplus) monies in the HDA without closing the HDA; or

(ii) withdraw all monies and close the HDA.

 

6. SHORT TERM MONEY MARKET DEPOSITS

 

6.1 SHORT TERM MONEY MARKET DEPOSITS ACCOUNT ("STMMDA")

(a) An STMMDA may be opened with not less than the minimum cash deposit in Ringgit Malaysia (“Deposit(s)”), as determined by the Bank from time to time.

(b) The tenure of each Deposit(s) may range from overnight up to a maximum of three (3) calendar months or such other tenure fixed by the Bank from time to time.

(c) The acceptance and continuance of the STMMDA shall be at the Bank’s discretion and the Bank shall not be bound to disclose reason for its non-acceptance or discontinuance.

(d) The interest rate for the Deposit(s) is available on request at any branch or from the Bank’s dedicated money market dealers and these rates may also be displayed at the Bank’s website. These rates may fluctuate from day to day and may also fluctuate intraday and the Bank is under no obligation to hold the rate.

(e) The Bank is the calculation agent to determine the interest amount payable on the Deposit(s).The interest rate once determined by the Bank and accepted by the Customer will be fixed at that rate throughout the period of the Deposit.

(f) Interest is calculated based on simple interest formula i.e. Amount of Deposit x T x interest rate where T is the number of days in the Deposit(s) period (including placement date but excluding maturity date). The Deposit(s) period for interest computation shall be adjusted for any expected or unexpected holidays.

(g) Interest is paid on maturity of the Deposit(s). If the maturity date falls on a non-Business day, interest shall be payable on the next Business Day. No interest will be paid on Deposit(s) uplifted before the Maturity Date.

 

6.2 INSTRUCTION ON DEPOSITS

(a) The provisions of Clause 3 of the General Terms and Conditions shall apply to instruction on STMMDA

(b) The Bank will issue confirmation to the Customer (“Confirmation”) after the execution of each Instruction for the placement of Deposit(s). Instructions relating to other matters will not be confirmed. The terms specified in each Confirmation shall be deemed to be agreed by the Customer unless the Bank receives notice in writing from the Customer of any errors within fourteen (14) days after the date of the Confirmation. All Confirmations shall be final, conclusive and binding on the Customer, in the absence of manifest error.

(c) The execution by the Bank of any Instructions shall constitute a binding contract and the Customer shall be bound to perform the contract according to its terms. Such transactions will not be subjected to receipt by the Bank of any written confirmation from the Customer.

(d) Any Confirmation, notice or communication to the Customer shall be validly given if it is sent by facsimile, personal despatch or courier, ordinary post or e-mail to the Customer’s last known residential/office address or its e-mail or facsimile address registered with or maintained by the Bank or is communicated to the Customer by telephone.

(e) The Bank shall be discharged from its liability for the Deposit(s) and the interest payable on the Deposit(s) once these amounts are remitted to the account designated by the Customer.

(f) The Bank shall be entitled to effect payments of interest on the Deposit(s) net of any deductions, withholding tax or any other taxes, including goods and services tax or levies imposed on such payments or transfers under the law.