Wadiah
Safekeeping: an asset placed with a custodian to be kept and returned on demand.
Wadiah is a contract in which an asset is placed with another party for safekeeping. Bank Negara Malaysia's policy document describes its inherent nature as trusteeship, so the custodian is liable only for loss caused by misconduct, negligence or breach of terms. The same document provides that where the asset is money and the custodian is allowed to use it, the contract is construed as a qard, a loan, and governed by the rules of qard.
Sources
This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.
Related terms
Wadiah yad amanahSafekeeping on trust: the custodian holds the asset without using it and is liable only for negligence or misconduct.QardA loan of money to be repaid in an equivalent amount; any benefit stipulated for the lender is riba.HibahA gift: a transfer of ownership without consideration, sometimes paid by banks at their discretion to account holders.Islamic depositA deposit product whose principal the Islamic bank is obliged to repay, as distinct from an investment account that shares risk.