The development of financial products in the country is increasingly rapid and has succeeded in meeting transaction needs in this sophisticated era. That way, we can make transactions quickly, easily and safely. Even so, it turns out there are still those who use conventional methods such as bilyet giro.
Some of you may feel unfamiliar with the term “bilyet”, even though many people use it. One of the main advantages of bilyet is that transaction security is guaranteed, so users don’t need to worry about various potential crimes.
Through this article, you will learn about the meaning of billets, terms, functions, rules, and other things that can help you understand this financial product.
Definition of Bilyet
According to Bank Indonesia on its official website bi.go.id, the bilyet is an order from the Drawer to the Drawee Bank to transfer funds to the Beneficiary’s account.
In other words, bilyet is a payment mechanism that applies to a customer’s checking account, which is why some people also call it bilyet giro. Usually billets are used in large transactions because they are safer and easier. When using a billet, you can make a maximum transaction of up to IDR 500 million and this money can only be carried by the direct proxy. If there is an error during the transaction, it will immediately be blocked and will not run.
In its use, the billet is used as a means of transfer orders, cannot be transferred, is issued in Rupiah currency, and is written in Indonesian. These four things are the general principles of a billet, so if one of them is not fulfilled the billet is considered invalid.
Even though giro bills have advantages in terms of security, that doesn’t mean they are 100% error or crime free. The problem is, sometimes there are irresponsible parties who issue blank giro bills. What is meant by an empty giro bill is the condition when you are going to make a transfer, it turns out that the contents of the giro bill are insufficient or the account has even been closed so the transfer cannot be carried out.
You must remember this carefully, especially if in the near future you have to use a bill of exchange for transactions. The reason is, if you issue a blank giro bill, you could be subject to civil sanctions or criminal sanctions. How did it happen?
Because empty giro bills are detrimental to many parties. For this reason, the bank will gradually impose sanctions on the party that issued it. The first sanction is that the bank will give a warning letter so that the perpetrator does not issue another blank giro bill. If the perpetrator is stubborn and carries out the “action” again, the bank will give a second warning letter accompanied by the threat of closing the account book and his name will be put on the blacklist.
If the second warning letter still does not succeed in stopping the perpetrator, the checking account will be immediately closed. Next, the bank will send a third letter containing notification of account closure. Apart from the blank giro bill, there is another term that you must remember carefully, namely the reverse giro bill. So, what is the meaning of a reverse giro bill?
Simply put, a post-dated giro bill is a security that is used as a non-cash payment method and in it there is a definite maturity date for disbursement. For example, you carry out a transaction where payment is made using a giro on December 6, 2022. Then you issue a giro on that date, but it is written on December 23, 2022.
This means that the seller who made the transaction with you will not be able to cash in the giro before December 23 2022. You can read a more complete explanation of the giro bill in the book Theory and Application of Banking Accounting written by Siti Nur Azizah, SE. This book discusses “basic banking material and accounting recording practices in the banking sector.
Read Also : What is a Nominal Account? Definition and Differences
Bilyet Formal Requirements
Apart from the general principles mentioned above, bilyet giro also has formal requirements that have been determined, including:
- Card name and number: Usually both are written at the top of the card. Specifically, the name is in the top left and the card number is in the top right corner.
- Name of interested bank: must be accompanied by the bank’s logo
- Name and account number of the giro bill holder: This information is generally written in the content section
- Date of writing the giro bill: Written at the top right after the bill of exchange number
- Clear transfer order: This is written in the body before the amount of money.
- Description of the amount of money: This section is written after the transfer order with nominal numbers and letters.
- Clear place and date of withdrawal: Information regarding the place and date of withdrawal is generally written below the amount of the giro bill
- Signature and name: This section contains the name of the company and the signature of its representative. Apart from that, there must be a stamp and also an attached account opening requirements.
- Clear name of the Drawer: This section can be carried out by the Drawee Bank provided that at least it must contain the name of the Drawer which is in accordance with the Drawee Bank’s data. If the Drawer is a business entity or legal entity, then its clear name is the name of the business entity or legal entity.
- Drawer’s Signature: This part is done with a wet signature that corresponds to the Drawee’s Bank records. If the Drawer is a legal entity, the signature will be carried out by the representative of the legal entity or the person receiving the power of attorney. This section can also be accompanied by a stamp if it is stated in the account opening agreement.
All formal requirements must be fulfilled using Indonesian, but if necessary you may add equivalent English words. Conditions number 1 to 3 must be carried out by the Drawee Bank, while conditions number 4 to 10 are carried out by the Drawer when issuing the giro bill. If one or more formal requirements are not met, it means that the bill is not recognized as a giro bill.
Talking about bills, you could say that it cannot be separated from banking accounting. So, what is meant by banking accounting? Mudalovers can find the answer in the book Banking Accounting: Transactions in Rupiah Currency – Edition 3 Print 6.
Read Also : What is Balance? Definition and Types
Functions, Properties and Rules of Cards
Basically, the main function of a bilyet giro is as a non-cash payment instrument issued by a bank with the aim of facilitating transfers from one account to the recipient’s account.
However, giro bills are widely used in the business world, for example when a company wants to pay for products from suppliers, they can use giro bills to ensure security.
1. Nature of Bilyet Giro
Well, because giro bills are non-cash payments, they definitely have special characteristics that differentiate them from other non-cash payment instruments. The characteristics of the giro bill include:
2. Cannot be paid in cash
As the name suggests, giro bills cannot be paid in cash. So don’t expect to be able to make cash payments when using this giro card. Even the system itself can only run by overbooking.
3. Payment can be made when it is due
Unlike other non-cash payment instruments, this giro bill can be paid when it is due. Before that, you can’t make payments at all.
4. There is a time when it happens
A giro bill has a validity period of 70 days starting from the opening date. It’s just that, sometimes there is no opening date on the giro bill, which confuses the giro bill holders themselves. If you find a case like this, you can use the effective date as the basis for the calculation.
5. Bilyet giro can be canceled directly by the Drawer unilaterally
Bilyet giro is a non-cash payment instrument that can be canceled directly by the Drawer and remains valid. Note that the balance must be sufficient to cover the stated value. Meanwhile, when the bill is due, it cannot be canceled unilaterally.
Then, when the balance is insufficient to cover the value written in the giro bill, the cancellation must be made for clear reasons that can be understood by all parties involved.
6. Bilyet Giro Rules
Apart from the four conditions above, bilyet giro also has rules that make it valid and can be used in accordance with the provisions. These rules are:
- The maximum validity period is 70 days
- The maximum clearing nominal is up to IDR 500 million
- The Drawer’s name is filled in just below the signature
- The Drawer’s signature must not and cannot be corrected
- Signatures must use a wet signature
- The giro bill must be handed over to the bank by the Drawer or a person given a power of attorney by the Drawer
- The disbursement process cannot and should not be transferred
- Each column can be corrected up to three times
- The withdrawal and effective date must be written
The difference between a billet and a check
There are several non-cash payment methods currently available, starting from checks, credit cards, e-money, debit cards, and of course giro bills. Of all of them, only checks and giro bills are in the form of bank orders.
If so, is there a difference between a giro bill and a check? Of course there is. These include payment mechanisms and withdrawal methods. withdrawal grace period, withdrawal obligations, transfer of ownership, and legal basis. Let’s examine the differences one by one.
1. Payment mechanism
Bilyet giro uses a payment mechanism in the form of book-entry when recording an account at the bank so that the bilyet giro cannot be “cashed” into cash directly. In principle, a bilyet giro is moving money from the giver’s account to the recipient’s account. Once the transfer is complete the recipient is free to cash it or leave it.
Meanwhile, checks use a transfer mechanism and are disbursed directly into cash. That way, if you hold a check, you can immediately visit the bank listed on the check to cash it into cash.
2. How to withdraw/disburse
Giro bills can be cashed out by visiting the bank office you use, so you don’t need to visit the bank that issued the bills. Please note that disbursement must be disbursed within the withdrawal grace period.
Meanwhile, checks can be cashed at the bank whose name appears on the check letter. After that, you can request a disbursement to your account.
3. Withdrawal Grace Period
Funds contained in giro bills can be submitted for transfer from the effective date of withdrawal until the validity period, which is 70 days. Meanwhile, the grace period for checks is around 70 days plus 6 months from the date of withdrawal.
4. Provision Obligations
The party who pays via giro (drawer) must prepare funds in their account balance to be paid to the recipient starting from the effective date until the validity period or for 70 days. If not, then the Drawer could be accused of making empty giro cards.
The person giving the check is also required to prepare funds in their account balance from the date of withdrawal until the validity period of the check expires. Otherwise, the Drawer could be accused of issuing bad checks.
5. Transfer of Ownership
Bilyet giro is only valid if submitted by the recipient named in the letter and cannot be transferred to anyone else. Meanwhile, checks can be redeemed by the recipient whose name is listed or transferred to someone else.
6. Legal Basis for Checks and Bilyet Giro
Bilyet giro is regulated using the legal basis of Bank Indonesia Regulations, while the legal basis for checks is the Commercial Code (KUHD).
The increasingly better development of the sharia economy and sharia banking in Indonesia really requires positive regulations from authorized institutions regarding financial reporting standards.
This Sharia Banking Accounting Book explains the sharia accounting treatment applied to transactions that occur in sharia banks in Indonesia, namely fund raising transactions with wadi’ah, Mudharabah and Musyarakah agreements; distribution of sharia bank funds with Murabahah, Salam, Istishna’, Mudharabah and Musyarakah contracts.
Obligations of the Parties in Using Bilyet
Each party involved in the transaction process using bilyet giro has their respective obligations. The parties involved include the Interested Bank, Drawer, Beneficiary Bank, and Beneficiary.
Interested Banks
For the Interested Bank, the obligations are:
- Include your name, giro bill of exchange number, name of the Interested Bank, and clear and unconditional instructions when printing the giro bill of exchange.
- Verifying the giro bill that will be withdrawn by the Drawer
- Administer giro bills that will be given to the Drawer
- Administer the withdrawal checking account
- Follow up on the blocking of Bilyet giro payments in accordance with the request letter from the Drawer and the authorized party.
- Administering the use of giro bills
- Reject the giro bill for clear reasons
- Carry out the transfer order according to what is stated in the giro bill.
- Responsible if any losses arise as a result of the Interested Bank not fulfilling the formal requirements for a giro bill
Puller
Meanwhile, the Drawer has the following obligations:
- Provide sufficient funds until the effective grace period ends
- Fulfill all formal requirements for a bilyet giro when issuing a bilyet giro
- Provide information to the Interested Bank about giro bills whose payments are blocked
- Responsible if any loss arises as a result of the Drawer not fulfilling the formal requirements of the giro bill
Beneficiary Bank
Furthermore, the Recipient Bank has an obligation to:
- Verify the giro bill received from the recipient including: the number of corrections on the giro bill and its validity period.
- Ensure that the recipient has fulfilled all the formal requirements for the Giro bill.
- Forward the giro bill to the Interested Bank
- Ensure that the party presenting the giro bill is truly the recipient or a party who has received power of attorney from the recipient
- Transfer funds received from the Interested Bank to the Recipient’s account
- Reject giro bills that do not comply with the provisions
- Provide information to the recipient if the giro bill is rejected by the Interested Bank and must be accompanied by a clear reason for the rejection.
Recipient
Meanwhile, recipients are required to:
- Reject giro bills that do not meet formal requirements
- Ensure that the formal requirements for the giro bill have been met
- Ask the Drawer to block the received giro bill if necessary.
Read Also : What is Balance? Definition and Types
Reconciliation Process in Bookkeeping
When a company or person receives a giro bill, the funds received will go into their account automatically. So, here the bank can use these funds for their other interests and offer checking services to account holders in return.
This current account service will later be used as a cash balance in the bank without the company or account owner realizing it. Thus, a mismatch will arise between the cash balance at the bank and internal cash.
Therefore, the account owner or company must reconcile or match the bank account and internal cash. Usually this reconciliation process is carried out at the end of the period by an accountant or with the help of accounting software.
That’s the discussion about the meaning of a billet and the difference between it and a check. Hopefully all the discussion above will add to your insight about cards. If you want to look for articles about accounting, you can get them at Mudabicara.com.