Legal Literacy - This article discusses Digital Banks and their responsibilities to customers, especially regarding deposit interest rates.

Digital Bank

Current technological advances make it easier for people to carry out activities. Technological developments in the financial system create easy and practical financial transactions for the community. This is evident with the existence of digital banks in the banking sector. Digital Banks have many benefits for human life where they have effective, efficient and optimal Banking services.

The main function of Banking is to collect and distribute funds to the public and aims to support the implementation of national development in order to increase equitable development, economic growth and national stability. Banking is required to adapt to current changes in the digital era. One form of adaptation is Digital Banking.

According to Financial Services Authority Regulation of the Republic of Indonesia Number 12/POJK.03/2021 concerning Commercial Banks, Digital Bank is an Indonesian Legal Entity Bank (BHI) that provides and carries out business activities mainly through electronic channels without physical offices other than the head office or using limited physical offices and can be implemented by establishing a new BHI Bank as a Digital Bank or transforming from an existing BHI Bank into a Digital Bank.

One form of existence of Digital Banks is by providing deposit interest on a relatively large scale. Article 4 of Law Number 24 of 2004 concerning the Deposit Insurance Corporation stipulates that there is an obligation for all banking company business activities carried out in Indonesia to become guarantee participants through the Deposit Insurance Corporation (LPS).

This obligation is intended so that when a bank has failed to guarantee customer deposits, the money will be transferred to LPS's responsibility.

According to the provisions of PENG-7/DSPS of 2023 concerning Stipulation of Guarantee Interest Rates for Deposits in Commercial Banks, if the deposit interest rate agreed between the Digital Bank and the depositing customer exceeds the deposit guarantee interest rate, the customer's deposit in question is not guaranteed. However, it was found that not all Indonesian Digital Banks comply with LPS regulations regarding deposit guarantee interest rates and choose to promise to provide interest that is greater than the limit set by LPS.

This can have a bad impact when the Digital Bank experiences liquidation, which results in no guarantee for customer funds. Therefore, Digital Banking needs to be responsible to Customers for Deposit Interest Rates that exceed the provisions applicable to LPS, which aims to maintain public trust in banks while maintaining the existence of Digital Banking in Indonesia.

The relationship between Digital Banking and customers is based on 2 (two) interrelated elements, namely law and trust. Public trust in Digital Banking is the basis for the public's willingness to deposit their funds in the digital Banking.

The legal relationship between Digital Banking and customers according to Munir Fuady, namely contractual and non-contractual relationships, contractual relationships refer to agreements made in writing between the parties involved, while non-contractual relationships refer to agreements made orally or unwritten. These agreements can cover various aspects, such as government procurement contracts for goods/services, electronic contracts (e-contracts), and standard contracts in banking credit.

The legal relationship between digital banking as a business actor and customers as consumers is a contractual relationship based on standard clauses made in an agreement, the rights and obligations of each party must not be limited only on the basis of the agreement at Digital Banking. Agreements at Digital Banking are often impartial and benefit the interests of Digital Banking as a business actor who has a more dominant position by containing standard clauses that are detrimental to consumers. The relationship between customers and Digital Banking must also be based on the laws and regulations in force in the field of consumer protection.

Impact of Providing Deposit Interest Exceeding LPS Provisions

When a customer has several bank savings accounts, the total of all these accounts is considered as a calculation of the guaranteed money. Guaranteed deposits include the principal amount plus interest for conventional banks or the principal amount plus profit sharing for Islamic banks.
The Deposit Insurance Corporation (LPS) announced the determination of the deposit guarantee interest rate as of February 2023. Based on the LPS Board of Commissioners meeting, an increase in the deposit guarantee interest rate in rupiah at commercial banks and rural banks (BPR) was determined. The guarantee interest rates for commercial banks, foreign currencies (foreign currencies), and Rural Banks (BPR) are 4.25%, 2.25%, and 6.75℅ respectively, then customers will not receive interest exceeding the reasonable interest rate set by the Deposit Insurance Corporation (LPS). The excess interest is not guaranteed by LPS.

Article 19 paragraph (1) of Law Number 24 of 2004 concerning the Deposit Insurance Corporation stipulates that guarantee claims will be declared ineligible for payment under several conditions, namely 1) If the customer's deposit data is not recorded at the bank, 2) The depositing customer is an unfairly benefited party, and 3) The depositing customer is a party that causes the bank's condition to be unhealthy. Letter (b) of Article 19 paragraph (1) relates to the condition of several banks that provide deposit interest exceeding the LPS limit.

These requirements can generally be said to be the 3T payable deposit criteria, namely 1) Recorded in the bank's books, 2) The deposit interest rate does not exceed the LPS provisions, and 3) Does not take actions that are detrimental to the bank. These three criteria are obligations that must be fulfilled by customers to make deposit guarantee claims when the bank where the deposits are stored has been liquidated. LPS was formed with the aim of guaranteeing customer deposits when the bank where they are stored has failed in its business by making guarantee claims on Banking customer deposits. However, when the deposit interest applied in the bank exceeds the provisions of the LPS policy, the customer's deposits will not be guaranteed by the Deposit Insurance Corporation.

Digital Banking Responsibility

Digital Banking has responsibilities, namely:

  1. Fund Security, which is maintaining the security of customer deposits. This includes protecting against data breaches, cyber fraud and illegal access.
  2. Information Confidentiality which maintains the confidentiality of customer data and personal information.
  3. Customer Service which provides responsive and helpful customer service, both through digital platforms and other channels.
  4. Transparency which provides clear and transparent information about financial products and services, including interest rates, fees and risks.
  5. Regulatory Compliance which complies with applicable regulations and laws in the field of digital finance.
  6. Paying Interest Rates according to Agreement which pays deposit interest rates in accordance with what has been agreed with customers.
  7. Explaining Risks which explains the risks associated with high interest rate deposit products, including LPS (Deposit Insurance Corporation) protection.

References

  • Law Number 24 of 2004 concerning the Deposit Insurance Corporation
  • Regulation of the Financial Services Authority of the Republic of Indonesia Number 12/POJK.03/2021 concerning Commercial Banks PENG-7/DSPS of 2023 Concerning Stipulation of Guarantee Interest Rates for Deposits in Commercial Banks
  • Fuady, Munir. Modern Banking Law, Bandung: Citra Aditya Bakti, 2003