BI Mold Interest Rates are up! LPS Raises Guarantee Interest
SINGAPARNA - Following the increase in Bank Indonesia's benchmark interest rate, the Deposit Insurance Corporation (LPS) has now decided to increase the interest rate for guaranteeing deposits in rupiah at commercial banks and rural credit banks (BPR).
The chairman of the LPS Board of Commissioners, Purbaya Yudhi Sadewa, said in a meeting of the board of commissioners, the guarantee rate rose 25 bps for rupiah at commercial banks and rural banks. Then for foreign exchange at commercial banks rose 25 bps to 0.75% and guarantee interest at BPR rose to 6.25% (27/09/2022).
In one year LPS routinely sets the guarantee interest 3 times, unless there is a significant change. In the event that the deposit interest rate given to customers is above the applicable deposit guarantee interest, it will not be guaranteed in the LPS criteria program.
In accordance with LPS regulations, if the deposit interest rate agreed between the bank and the depositor exceeds the Deposit Guarantee Rate, the customer's deposit is not guaranteed.
"In this regard, banks are required to notify depositing customers regarding the applicable deposit insurance interest rate and the maximum deposit value guaranteed by LPS by placing the information in a place that is easily known by depositors," he said.
In line with the aim of protecting customers and expanding the coverage of guarantees, IDIC urges banks to pay more attention to the provisions on deposit insurance interest rates in the context of raising funds.
"If the bank doesn't explain, we will call and announce it," said Purbaya.