Kali will discuss the meaning of collection and its procedures, mechanisms and types. Without further ado, here’s the explanation …
Table of contents :
Definition of Collection
Collection Procedure
Collection mechanism
Types of Inkaso
- Collection Out
- Entry Entry
Document Collection
Functions and Roles of the Collection
Inkaso function
The role of the Collection
Scope of the Collection
- Domestic Payment Traffic
- Overseas Payment Traffic
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Definition of Collection
Collection is a form of bank service that is used to carry out the mandate of a third party in the form of collection of money.
Collection is a Bank service activity to carry out the mandate of a third party in the form of collecting an amount of money from a certain individual or entity in another city that has been appointed by the person giving the mandate.
The billing transaction referred to is the collection of checks / BG from a bank located in a clearing area or a certain city to an issuing bank located in a different city and clearing area.
From the connection with the collection, we will recognize the conditions:
- The initiating bank
The initiating bank is a bank whose function is to receive scripts from third parties to be billed and return the results to the third party.
- Implementing Bank
The executing bank is the party that bills the customer (third party) based on the mandate of the initiating bank / branch and the results are for the benefit of the third party customer of the starting bank.
The collection process requires media in the form of scripts provided, such as checking giro, regular mail or facsimile and telex.
There will be a fee for using the media, and this fee will be charged to the third party who provides the collection mandate. In addition, the initiating bank will receive income in the form of a collection commission.
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Collection Procedure
The following is the flow of the collection procedure:
collection procedure
Collection mechanism
The following is the mechanism used by the teller to the depositor:
collection mechanism
Types of Inkaso
When viewed from traffic dananys, collection can be divided into 2 (two), namely:
- Collection Out
Collection out is a collection of customer instructions for collection from third parties both at their own branches and banks outside the city.
This collection is paid for or credited to the account to the trustee’s account at the initiating bank after the collection has been successfully charged.
- Entry Entry
Incoming receipts are incoming invoices for accounts / account charges (documents issued) from the customer itself, the results of which will be sent to the initiating branch for the benefit of third parties.
We can draw the entry and exit collection process with the following graph:
types of inkaso
During collection activities, in terms of interested parties as customers of other banks, it can be described in the chart below:
types of inkaso
Document Collection
Not all notes issued by a bank can be included in collection activities. Residents who can be included are grouped into 2, namely:
Notes with scripts without attachments are collection documents that are used when carrying out collections without attached documents. For example: checks, bilyet giro.
Records enclosed with scripts are scripts, the inclusion of which must be accompanied by supporting documents. Example: receipts, invoices and insurance policies.
Functions and Roles of the Collection
Inkaso function
Bank service servants in carrying out their duties as “money payment traffic servants” carry out various activities.
The role of the Collection
Helping to be more effective and efficient in settling inter-city bills. More bona fide and the customer has a clearer reputation.
Scope of the Collection
- Domestic Payment Traffic
Remittance (Transfer)
Inkaso (Collection)
Domestic Letter of Credit (SKBDN)
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Other Bank Services:
Buying and selling traveler’s checks / tourist’s checks (travelers checks)
Kartu kredit (credit card)
Bank guarantee
The activity of buying and selling securities
Safe deposit box
Buying and selling foreign currency
Transactions in foreign exchange trading
Supervisor in the field of publishing Obligations (trustee)
Insurer in the field of bond issuance (guarantor)
- Overseas Payment Traffic
Money transfers (Transfer) to and from abroad
Inkaso (Collection)
Opening of L / C Abroad
Transfer
Money Transfer Method:
On line money transfer (interbranch transfer), EFT (electronic fund transfer)
Telex transfer (Telegrafic Transfer)
Transfer by SWIFT (Society Worldwide Interbank Fund Transfer)
Delivery by Domestic Check (Bank Draft)
Delivery by Check Overseas or IMO (International Money Order)
