Central Bank standardizes issuance of giro drafts<\/p>\n
JAKARTA (JP): Bank Indonesia has standardized the issuance of
\nbank giro, a kind of bank draft, to provide greater legal
\ncertainty to the drawer, the payee, and the banks issuing and
\naccepting the instrument of payment.<\/p>\n
The central bank announced over the weekend that the measure
\nwas taken to minimize the number of rejected giro drafts in the
\ncountry's banking system.<\/p>\n
Under the standardized procedures, the maturity period of the
\nbank giro -- a payment order which automatically transfers a
\nstipulated amount of a customer's funds to a designated third
\nparty in the same or a different bank -- is set at 70 days.<\/p>\n
Other important aspects of the standardized procedures include
\nthe requirement imposed on the drawer to provide the required
\nfunds within six months from the issuance of the giro draft. The
\nsix-month requirement can be waived if the drawer cancels the
\ngiro immediately after the maturity period of the payment order
\nhas ended.<\/p>\n
The request for the cancellation of the giro should be done in
\na written form and should be addressed to the paying banks after
\nthe maturity term has been achieved.<\/p>\n
According to data at Bank Indonesia, more than 80 percent of
\nthe bank drafts circulating in Jakarta are issued in the form of
\ngiro.<\/p>\n
In December 1994 alone, the clearing of bank drafts in Jakarta
\nreached 2.93 million drafts at a total value of Rp 61.35 trillion
\n(US$27.6 billion). Around 89 percent of the total cleared drafts
\nwere in the form of bank giro, with a total value of Rp 29.23
\ntrillion, and the remaining 11 percent in checks.<\/p>\n
The value of bad giros reached Rp 59 billion and that of bad
\nchecks totaled Rp 23 billion. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/central-bank-standardizes-issuance-of-giro-drafts-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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