Duties of Rural Banks: Definition of BPR, Legal Basis, Terms and Conditions
Duties of Rural Banks: Definition of BPR, Legal Basis, Terms and Conditions - What are the tasks of the People's Credit Bank? ?On this occasion About the knowledge.co.id will discuss the tasks of Rural Banks and other elements surrounding them. Let's look at the discussion together in the article below to better understand it.
Duties of Rural Banks: Definition of BPR, Legal Basis, Terms and Conditions
According to article 13 of the Banking Law no. 10 of 1998, Rural Banks have a business activity including the following:
- To collect funds from the public in the form of deposits in the form of time deposits, savings, and/or other equivalent forms.
Duty to provide credit. - To provide financing and placement of funds based on sharia principles, in accordance with the provisions stipulated by Bank Indonesia.
- To provide financing and placement of funds based on sharia principles, in accordance with the provisions stipulated by Bank Indonesia.
- To place public funds in the form of Bank Indonesia Certificates (SBI), time deposits, certificates of deposit, and/or savings at other banks.
Definition of Rural Credit Bank
Rural Banks (BPR) are bank financial institutions that only accept deposits in the form of time deposits, savings, or others by channeling funds as BPR businesses.
Based on Law no. 10 of 1998 concerning amendments to Law no. 7 of 1992 concerning banking. Rural Banks are banks that carry out business activities conventionally or conventionally based on sharia principles which in its activities do not provide services in traffic payment.
The status of BPR (People's Credit Agency) is given to Village Banks, Village Barns, Market Banks, Employee Banks, Barns Pitih Nagari (LPN), Village Credit Institutions (LPD), Village Credit Agency (BKD), District Credit Agency (BKK), Small People's Business Credit (KURK), District Credit Institutions (LPK), Village Production Bank (BKPD) and/or other institutions that are equated based on the Banking Law Number 7 of 1992 by fulfilling the procedural requirements stipulated by the Regulation Government.
The number of services or products of rural credit banks is far less than that of commercial banks. Rural Credit Banks are limited by a number of terms or conditions. This makes Rural Banks not as flexible as Commercial Banks. This limitation is the mission for achieving goals by Rural Credit Banks.
Legal Basis of Rural Banks
Based on UUD No. 10 of 1998 concerning an amendment to UUD No. 7 of 1992 concerning banking, BPR is a bank that operates business activities conventionally or based on Sharia Principles in which services are not provided in the form of payment.
The Role of Rural Credit Banks
BPR is expected to be able to support in carrying out national development. Rural Banks are also expected to be able to play an active role in increasing equity, economic growth, and national stability towards improving people's welfare.
The mission realization of BPR is to serve the needs of the general public such as traders, breeders, farmers, fishermen, small entrepreneurs, employees and retirees. The target in serving this service is still not reached by Commercial Banks. So BPRs can achieve more in terms of equity in banking services, business opportunities, income, and people avoiding moneylenders.
Terms and Conditions for Rural Banks
The terms and conditions that must be complied with by BPR are:
- It is not permissible to receive funds from the public that are kept in the form of demand deposits
- Not allowed to participate in payment traffic or clearing service activities
- Not allowed to carry out foreign exchange trading business activities
- Not allowed to carry out insurance business activities
- Not allowed to carry out business activities outside the business activities that have been stipulated in the law.
Examples of Rural Credit Banks
Here are some examples of rural credit banks, including:
- Islamic Bank
- tapeudana bank
- conventional banks
- supra bank
- bank wijayamulya santosa
Advantages of Rural Credit Banks
Warranty Requirements Are Not Difficult
In Rural Credit Banks, guarantees are not a major requirement in considering granting credit. In BPR loans, the main consideration in approving a loan is the long-term business prospects or how likely your business is to be successful.
Thus, collateral that is used as collateral does not have to be liquid and easy to sell. This advantage can be a benefit for those of you who want to borrow money but don't have liquid valuable assets such as motorized vehicles or houses.
Prioritizing the Element of Trust
This People's Credit Bank (BPR) is not a financial institution that prioritizes profit or profit. The main thing for BPR is the element of mutual trust. The element of trust is also applied when BPRs provide loan products to customers. This advantage is useful because you can get a larger loan amount on the next loan as long as you have a good reputation.
Have a Good Marketing System
With its vision to help develop micro and small and medium enterprises (MSMEs) from the element of capital, BPRs always try to reach MSMEs located in rural areas or remote areas, with the aim of reaching customers or prospective borrowers who are micro and small and medium enterprises (MSMEs) the.
Fast and Easy Fund Disbursement
Because the aim is to help finance micro and small and medium enterprises (MSMEs), the disbursement of funds is accelerated, which is only about 2 to 3 working days. After all the requirements are completed and fulfilled, the BPR will immediately check and also analyze the data. If the data is sufficient, a field survey is immediately carried out to see the business being carried out by the prospective debtor or borrower directly.
Thus the review from About the knowledge.co.id about Duties of the People's Credit Bank, hopefully can add to your insight and knowledge. Thank you for visiting and don't forget to read other articles.
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