Wadiah: Definition, Pillars, Types, and Conditions

Of course, as a customer of an Islamic bank or for those of you who have a deeper understanding of Islamic banking, you will find various contracts which are one of the most important requirements. One type of contract that is often encountered is the Wadiah contract. With this understanding, maybe in your mind, what is meant by wadiah? Let's understand further the meaning of Wadiah as a contract and its use in the Islamic banking system.

Meaning of Wadiah

Wadi'ah comes from the word wada'asy syai-a, which means something that is entrusted or entrusted to someone else who can keep it as pure deposit for another party, both personal and corporate, and return it whenever the depositor wants it.

In Islamic economics, wadiah is a customer's deposit that must be kept and returned whenever the customer wants. The bank is responsible for returning the deposit.

Wadiah is a tabarru'at (mutual help or mutual assistance) contract, therefore it is included in the category of zakat contracts. However, this contract can become a mu'awadhah (exchange) or tijarah (profit-making) contract if it is agreed that there is a business plan concerning the profit of buying and selling goods (rental of space) and/or activities. profit buying and selling (services) save something save something.

Wadia Pillars

Wadiah pillars consist of presence;

• Muwaddi' or depositor

• Mustauda' or the party receiving the deposit

• Wadiah objects or assets to be deposited

• Akad as proof of agreement on safekeeping of assets. In the implementation of the contract, it can be expressed verbally, in writing, and in gestures

Wadiya type

To understand the meaning of wadiah, there are two types of wadiah contracts which are often used as principles. This was also issued by OJK as the regulator of financial services in Indonesia. The following is the definition of Wadiah based on its types and principles.

• Wadi'ah Yad Dhamanah

A checking account is an example of a savings product that uses the word Wadiah Dhamanah. Wadiah which is understood as a principle of type Wadiah yad dhamanah. The definition of Wadiah in this Policy refers to the responsibility of the party entrusted with the integrity of the Preserved Property so that said party can use the Preserved Property.

• Wadi'ah Amanah

The type of wadiah deposit deed according to the meaning of wadiah, this deed is only a type of deposit deed. In this case, the authorized body is given the authority to manage money properly and wisely. In contrast to the concept of wadiah yad dhamanah which can use entrusted assets.

In this type of contract, the depositor may not use or use the money to increase the depositor's potential return. In addition, in the spirit of wadiah amanah, it is stated that if the goods or funds deposited are damaged, the responsibility remains with the owner.

Wadiah conditions

The conditions of Wadiah include:

• Both the person who entrusts it or the person who is entrusted with it must be intelligent

• Both parties must have reached puberty and mumayiz. However, there are scholars who say that minors may enter into a wadiah contract as long as there are no terms and conditions for buying and selling that are difficult for the child to understand.

• The assets or goods deposited must be able to be given physically.

By understanding the meaning of Wadiah, now you can safely manage your banking transactions such as saving according to Islamic and Sharia principles.