The current era of digitalization has penetrated the banking world, where various types of transactions, which are generally used to be carried out through face-to-face activities with bank tellers, have now changed by the development of modern technology infrastructure online or online.
One of the advantages of this transition is increasing accessibility for its users, of course this is also supported by development and penetration of smartphones in Indonesia. By downloading the mobile banking application on a smartphone, customers can gain access to a variety of banking facilities. They no longer need to wait in line to have their banking needs fulfilled.
The online banking services that you can access through smartphones include:
There are several mobile banking applications that also feature the facilities to talk directly to customer service when you are experiencing problems during your transactions. There are many more features provided by each bank through their mobile applications, but the feature that we use the most is the digital bank transfer service or online transfer.
This service for transferring or remitting money can be carried out by customers through the same bank or different banks as their transfer destination. There are several options of money transfer channel that can be used in online banking platforms as follows:
The method of transferring and sending money that we often use and encounter in daily transactions is the real-time system transfer option, or commonly known as Real Time Online. In accordance with its nickname, Real Time Online or RTOL can be done anywhere and anytime, without having to go to the bank.
This system is similar to one of the characteristics of BI-Fast, where the money transferred directly arrives at the destination account, whether it is transfers between the same or different banks. The features are also offered are in the form of payment transactions on e-commerce (virtual accounts), electronic wallet platform (e-wallet), and other OTT (Over The Top) communication services.
Real time online refers to the transaction time required by customers to transfer funds, where the system will immediately record transaction data and store it in the data center database. Unlike the RTGS system which takes several hours or even clearing which takes several days for the money to reach the beneficiary's account.
Real Time Online payment channel options can be carried out through ATM, internet banking, mobile banking, or SMS Banking. The transaction limit for each Real Time Online transaction ranges from Rp. 25,000,000.00 to Rp. 50,000,000.00 per transaction. With RTOL interbank transfer fees ranging from IDR 6,500 to IDR 7,500.
LLG and SKN are commonly used for transfers with larger amounts, with limits up to 500 million rupiah. Even though the transfer limit is larger than RTOL, LLG takes time for the funds to arrive in the beneficiary's account. Remittance time ranges up to 4 hours and can only be done during business hours.
This system uses bank clearing facilities, so the running time follows bank working hours (8am - 3pm). Transfer requests received after operating hours will be processed on the next working day.
For transfers using the LLG or SKN system, the money sent will be recorded and processed in the Bank Indonesia system before being forwarded to the beneficiary's account. Transfer fees using this delivery line are set by Bank Indonesia or SKNBI with a maximum of IDR 2,900 per transfer.
For transfers of a very large amount, there is another channel that is often used, called the Real-Time Gross Settlement method. Just like Real-Time Online, this method can be done through m-banking if the account’s transfer limit allows, or through the nearest bank branch. The difference between this system is that this system is usually used to send large amounts of money, which is above 100 million rupiah per transfer. RTGS transfer does not have a cap for its transfer amount limit.
Even though it is called real-time, due to the large amount of transfers, sometimes this remittance process can take up to 4 hours. However, transfer times availability is not limited to banks' operating hours. The transfer fee for the RTGS method is also quite large compared to the LLG or RTOL transfer fees. the cost of transfer via the RTGS line can go up to 35 thousand rupiah.
Adapted from the Bank Indonesia website, BI-Fast is a national retail Payment System infrastructure that can facilitate retail payments in real time, safely, efficiently, and available at any time for 24 (twenty four) hours a day and 7 (seven) days a week.
According to Bank Indonesia, BI-FAST which was implemented in stages since December 2021, with the initial priority set for individual credit and debit transfers. The next stage would be implemented gradually for BI-Fast services which include bulk credit, requests for payment, and will be realized in 2023. After that, BI-FAST will also expand services for other types of transactions such as instrument-based transactions, QRIS, and cross border.
BI-Fast aim to improve services for banks customers in these points :
Following on the perceived obstacles in the Bank Indonesia National Clearing System (SKNBI) service, which has not been able to fully meet the banking needs due to limited service time (available only within business hour), settlement time for the funds once arrived that is not in real time (both at the bank level and customer domain), as well as the limited options of payment channels, which in turn reduces the convenience of transacting in cash and non-cash.
Therefore, a system was created to eliminate all of the problems above, by bringing real time features that can be accessed at any time, with availability not limited by working hours, where funds will be received on time by customers and banks, whether it is a credit transfer (push) or a debit transfer (pull).
At this initial stage, BI-Fast services can be accessed through mobile channels connected to the internet network as well as the nearest retail outlets. then in the near future, BI-Fast will grows it’s channel network to facilitate customer transactions, namely through QRIS instruments, Automated Teller Machines or ATMs (including virtual accounts), credit cards (including virtual accounts), electronic money/e-wallets and even Electronic Data Capture or EDC.
BI-Fast is expected to strengthen the resilience of the national retail payment system by providing an alternative to the existing national payment system infrastructure. Where this service is equipped with features such as Fraud Detection System and Anti Money Laundering/Combating Financing of Terrorism (AML/CFT). Next, BI-Fast will also be equipped with a feature that provides automatic notifications to customers.
The BI-FAST feature uses a proxy address that works as a substitute for an account number and is intended to increase transaction convenience, because a proxy address is an alias that is easier to remember than an account number. The proxy addresses provided are mobile phone number, e-mail address, and/or other proof of identities as determined by the service provider.
Bank Indonesia (BI) has set two price schemes in the use of BI-Fast, namely the price from BI to the Bank; and the price from the Bank to the Customer. The price from BI to the Bank is set for IDR 19.00 per transaction, while the price from the Bank to the Customer is set at a maximum of IDR 2,500.00 per transaction. The amount of the transaction fee will be reduced gradually based on periodic evaluations. The maximum amount limit for BI-Fast transactions at this stage is set at IDR 250,000,000.00 per transaction.
Those are some of the different types and fees for money transfers between banks in Indonesia. If your business carries out transfers between and inter-banks in large frequencies, oftentimes bookkeeping can get complicated. For this reason, Aspire all-in-one finance management system provides integrated features for all your operational financial needs, that can sync perfectly with your bookkeeping software.
With Aspire, send and receive money via virtual accounts to various banks all around Indonesia. All transactions will be recorded neatly and integrated with the company's bookkeeping software and budgets. Check out the other Aspire features that can help streamline your company's operational finance management process.
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