RURAL BANK

Definition

Rural Banks (BPR) are banks that perform their business activities in a conventional manner or based on Islamic principles, excluding services in payment traffic.

Rural Banks have a smaller scope of business that Commercial Banks in a sense that they are prohibited to provide checking account, currency exchange, and insurance services.

BPR’s Business Activities

BPR is authorized to perform the following business activities:

Collect and deposit funds from the public in a form of term deposit, savings, and/or other equivalent forms;
Disburse loans;
Provide payment or funds placement based on Islamic principles in accordance with the regulations set up by Bank Indonesia;
Placing funds in the form of Bank Indonesia Certificates (SBI), term deposits, ceritificate of deposit, and/or savings in other banks.