Wadiah Acceptance is a transaction between BNM and the Islamic banking institutions. It refers to a mechanism whereby the Islamic banking institutions place their surplus fund with BNM based on the concept of wadiah yad dhaman (Guaranteed Custody). Under this concept, the acceptor of funds is viewed as the custodian for the funds and there is no obligation on the part of the custodian to pay any return on the account. However, if there is any dividend paid by the custodian, it is perceived as hibah and paid based on the discretion of the custodian on the maturity date of the acceptance.

The Wadiah Acceptance is one of the monetary policy instruments of BNM to absorb excess liquidity in the Islamic banking system, through acceptance of overnight to 3 months money. BNM conducts the Wadiah Acceptance transaction on tender basis, as well as through agent banks.