Bilyet Giro: Definition, Nature, Conditions, and the Party Who Makes It

The role of banks is very useful for managing the economic life of society and the country. The existence of a bank that provides banking services in the collection and transfer of funds to fulfill its mission, namely advancing the welfare of the community.

Banking activities in raising funds include savings, time deposits, limit deposits and demand deposits. Then distribute it in the form of bank loans or credit such as business capital loans.

When talking about banking services, the terms savings, deposits and credit seem familiar to you. But what is a bank transfer? Do you understand the use of bank transfers?

The definition of bilyet giro is a customer's instruction to the trustee to transfer a certain amount of money from the customer's account to the beneficiary's account. In this article, let's discuss more about giro bills.

Definition of Bilyet Giro

What is a giro? In general, a giro is an order from a customer to a bank to request a transfer. In addition, the term Bilyet Giro means a method of payment or it can also be referred to as a giro payment instrument. The purpose of this order is to transfer a certain amount of money from the customer's account to the recipient's account.

Referred to as a bank transfer, the customer maintains a checking account at the bank and places orders. Even though the beneficiary is the account holder whose name is mentioned in the bill of lading to receive money from the withdrawer.

In this case, the demand deposit slip can be valid for 70 days after the invoice is sent. This means that the validity period of the deposit voucher is calculated after that period, if necessary. This means that the invoice will be lost and the customer will have to send it again.

The maximum amount of money transferred via bank transfer is IDR 500 million. On the other hand, security is more guaranteed with this postal business compared to clients with check letters.

This is because the bank transfer process must be canceled and received directly by the customer or recipient. If an error occurs in this transaction, it can be immediately blocked. In fact, the bank transfer effect is canceled automatically.

The nature of the Bilyet Giro

Like other payment instruments, giro bills also have special features that make them the safest non-cash payment instrument. Some of the characteristics of a giro are:

• Has an approved validity period.

• Cannot pay cash directly.

• Payment is made on the due date.

• Bilyet Giro can be terminated unilaterally by withdrawal or by the customer.

Terms of Bilyet Giro

Based on Bank Indonesia (PBI) No. 18/41/PBI/2016 concerning Bilyet Giro, there are several conditions that must be considered when canceling (the customer submits a transfer account), including:

• Bilyet giro are not classified as securities.

• Giro card holders must meet the formal requirements for giro slips.

• Giro card holders must have sufficient funds.

• Giro withdrawals must inform the bank if they wish to cancel or block the giro.

The Party Making Giro Bilyet

The issuer of the demand deposit slip is the Interested Bank, so that several parties are involved in issuing the demand deposit slip if necessary.

• Withdrawal Bank, meaning the bank where the withdrawing customer keeps their funds.

• Withdrawers or customers who save money in a bank and ask to issue demand deposits.

• Beneficiary, namely the owner of the account number designated by the Withdrawer to receive payment of an amount of funds.

Such is the summary of the giro bill from its meaning to its function. Hopefully this article will help you answer your confusion about giro bills.