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Islamic Callable Range Accrual (ICRA)

A principal protected deposit product whereby its returns (a variable profit rate) is only earned if the performance of the underlying reference index falls within a specified range. For ICRA, the Bank has the option to call back (cancel) the IRA NIDC but only on a profit payment date.

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Features:

Islamic Callable Range Accrual is structured based on the issuance of a Negotiable Islamic Debt Certificate (NIDC)


Shariah Structure:

  • Tawarruq (Sale and Purchase transaction to obtain cash)
    This refers to an arrangement of commodity trade whereby the Customer will sell the Shariah permissible commodity to the Bank on deferred payment basis. Subsequently, the Bank will sell the commodity to a third party.
  • Wa`d (Undertaking)
    This refers to the unilateral promise or undertaking by the Bank to perform a series of Tawarruq transactions which allows the Customer to receive the variable profit based on the terms of the NIDC.


Tenure: 5 years or less

Amount: As determined by the Bank but not less than the minimum requirement of RM 100,000.00

Currency: MYR