Bank Indonesia, the country’s central bank, is set to ease branchless banking services and electronic money regulations, reports Jakarta Globe. This initiative will be taken in order to broaden cashless payment systems in Indonesia.
The country has taken various steps into improving electronic money regulations.
This new regulation will be implemented next week. Bank Indonesia will allow any lender with a core capital of above $76 million to provide branchless banking services. This will also extend to accepting deposits or payments using individual agents, instead of going the traditional route of visiting local branches or ATM machines.
This should cut down a lot of waiting time spent at banks for consumers.
Currently only five lenders provide branchless banking services including state-controlled lenders Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia as well as Bank Central Asia.
There are areas that are not covered by smaller sized banks like the regional development banks. Therefore, Bank Indonesia will have to also accommodate these banks in order to finalize the new regulations.
Electronic transaction of money has gained popularity in the past few years.
Bank Indonesia will also implement a feature to transact with electronic money for public transport and toll road payments.
This new regulation should push the country forward in terms of easing electronic transactions and integrating cashless payments into every day life functions, such as on public transports.
Before adopting the platform, all banks are urged to demonstrate risk management to prevent cases of fraud or terrorism.
A version of this appeared in The Jakarta Globe on August 10. Read the full version here.