What is a People’s Credit Bank?

Rural Bank (BPR) is a financial institution that accepts deposits only in the form of time deposits, savings , or other similar forms and distributes funds as a BPR business. Generally, BPRs are located in small cities where the location is close to where people are in need. BPR status is given to Village Banks, Village Granaries, Market Banks, Employee Banks, Pitih Nagari Granary (LPN), Village Credit Institutions (LPD), Village Credit Agencies (BKD), District Credit Agencies (BKK), Small People’s Business Credit (KURK ), Subdistrict Credit Institutions (LPK), Village Production Work Bank (BKPD), or other institutions based on Banking Law No. 7 of 1992 by meeting the requirements of procedures determined by government regulations.

The Purpose of People’s Credit Banks

The purpose of the Rural Bank (BPR) is to focus on serving the community, especially people in remote and remote areas that have not been reached to the fullest extent by commercial bank services.

The Role of People’s Credit Banks

The Rural Bank (BPR) has a role to support the implementation of national development and is expected to be able to increase equity, economic growth and national stability in order to create public welfare. To realize this, BPR serves the needs of the community, who are generally a fisherman, farmer, small businessman, trader, breeder, and retiree. BPR focuses on people in remote areas to be able to realize economic equality and avoid the activities of moneylenders.

Duties of Rural Credit Banks

  1. Collecting funds from the public in the form of time deposits, savings or other forms.
  2. Give credit to people in need.
  3. Providing financing for customers based on profit sharing principles in accordance with the provisions stipulated in government regulations.
  4. Placing funds in the form of Bank Indonesia Certificates, time deposits, certificates of deposit, or other types of savings.


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