Please refer to ‘Instructions for Profit & Loss Distribution and Pool Management for Islamic Banking
Institutions (IBIs)’ issued vide IBD Circular No. 3 of 2012.
2. To address the comprehension and practical issues regarding some of the clauses of the
Instructions, the following clarifications are issued:
i. Clause 1.10: The transaction record mentioned in the clause shall interalia include ‘memorandum’
as given in para 1.2.
ii. Clause 3.2: The average balance in this clause means average daily balance (daily product).
iii. Clause 4.1.2: The PSR cap prescribed in the clause shall not be applicable on FCY deposits.
iv. Clause 4.2.4: The last sentence of this clause is replaced with the following:
“In case of early/premature encashment of TDR, the applicable weightage on such TDR shall be that
of the TDR of the nearest completed tenor. For instance, a five year TDR encashed after one year
shall be assigned the weightage applicable on one year TDR”.
v. Clause 5.3: The special or individual Hiba for calendar year (CY) 2013 shall be capped at 50% of CY
2012 level in absolute terms and for CY 2014 at 25% of CY 2012; whereas no Special Hiba shall be
permissible from January 2015 onward.
vi. Appendix-I – Process flow: The deduction/utilization of PER shall only be at the level of Net Income
of the pool. The revised process flow is enclosed at Appendix-I.
3. Other instructions as contained in the circular shall however remain unchanged.
Please acknowledge receipt.
Encl: Appendix-I