YOGYAKARTA – Bilyet giro is an instant non-cash payment service. Understand the differences between giro and check bills and examples here!
However, apparently, there is another non-cash banking service called bilyet giro. Even though they are similar, in fact there are differences between checks and giro bills, you know.
Bilyet giro is a bank payment service written on a special piece of paper to transfer funds from one account to another. Meanwhile, checks are also written on special paper, but you can immediately withdraw the funds when you show them to the bank.
Then, if both are written orders to the bank and are used to pay a certain amount of funds, what is the significant difference between a check and a giro bill? Come on, read the following article until the end!
Understanding Bilyet Giro and Check
Before discussing the differences between the two payment instruments, you need to understand the meaning of giro cards and checks first.
Bilyet giro is a demand deposit payment that is usually provided by commercial banks in Indonesia. In another sense, the party that makes the giro bill is the bank. Where the following bank is known as the interested bank or service provider and intermediary from the drawee to the recipient.
The drawee is the person who has a checking account at the bank and issues the bill. On the other hand, the recipient is the individual account holder whose name is mentioned in the slip to receive a certain amount of money.
The validity period of the giro bill is 70 days from the date of issuance. If it exceeds 70 days, the billet cannot be used and a new one must be issued.
Not only that, transferring funds to a bill of exchange can only be done at the same bank.
So, what is a check? A check is a non-cash payment instrument in the form of a written letter containing an order from the owner of the funds and given to the recipient of the funds to be disbursed at the bank. Disbursement of funds can only be done at the bank that made the check.
Difference between Bilyet Giro and Check
1. Disbursement of Funds
The first difference between checks and giro bills lies in the disbursement of funds. Checks can be cashed directly at the bank. On the other hand, demand deposits cannot be immediately withdrawn in cash.
Not only that, check payments can be attempted when presenting the check to the bank. Recipients immediately receive funds according to the nominal value stated.
Unlike checks, transfers to current accounts can only be made in the name of the account owner and funds can only be transferred once the effective date has been reached.
2. Stamp Fee
Check withdrawals at the bank will be subject to stamp duty according to the provisions. On the other hand, the person who draws the current account is exempt from stamp duty.
3. Cash
A check functions as an order from the account owner to the bank to pay using cash to the individual listed on the check.
On the other hand, giro has the function of a warrant from the giro account owner to the bank to transfer money to the person listed on the bill and who has a registered account at a particular bank.
4. Publication Date and Effective Date
Sometimes the check only states the date of issue because there is a post-dated check. For this type of check, for example, you give a check on January 7 2021, but it can only be cashed on January 10 2021. Usually because the check giver doesn’t have enough funds.
On the other hand, giro includes the date of issue and the effective date on the bill provided. The publication date coincides with the creation of the billet. The effective date is the entry into force of the order to transfer from the drawee’s account to the recipient’s account.
5. Legal Sources
The final difference between a check and a giro bill lies in the legal source. The legal source applied for checks is the Commercial Law Book (KUHD). On the other hand, the legal source used for current accounts is Bank Indonesia Regulations (PBI).
Apart from that, also read “Understanding Bank Acceptance” so that you understand several banking terms.
So after knowing the difference between a giro bill and a check, check out other interesting news at VOI.IDit’s time to revolutionize the news!
Tag: banking economics archipelago
2024-01-31 01:01:00
#Similar #difference #Bilyet #Giro #Check
