Payment System - Pay-ins Withdrawals of the Bank

1.	Q: When cash is deposited at Bank Indonesia, how are differences in the cash count resolved?
	A: When cash is counted for deposit at BI and there is a discrepancy in the count, BI usually asks the bank to perform a joint count. At least four factors are involved when a discrepancy arises. For example, the number of banknotes or coins could be less or more. Discrepancies can also arise because of inclusion of a different denomination or from damaged banknotes or coins that cannot be redeemed and discovery of counterfeit money.
2.	Q: If a bank never deposits cash at BI, can the column for that bank’s cash deposits be left blank?
	A: Of course.
3.	Q: BI recently conducted a trial run of its new cash deposit system. In the future, will there still be a division into BI operating areas? And will banks be able to handle cash management for other regions under the proposed plan for cash centres?
	A: This will still be possible if a bank serves other branch offices in other areas.
4.	Q: Will the establishment of Focus Groups (FGs) be driven by BI or will the FGs be established by the banks themselves?
	A: There are several underlying considerations in the establishment of the FGs. However, the main factor is the character of the individual banks in the local area.
5.	Q: In regard to cash clearing, will the costs be borne by the FGs? And what about the delivery mechanism and requests for physical checks, such as for counterfeit money or discrepancies in the cash count?
	A: Clearing charges will be specified in the By-Laws, as required by law. Nevertheless, the charges can also be determined under a joint arrangement by the banks involved. The draft By-Laws state that cash will pass through an overall check before proceeding with detailed examination. After the count is completed, an official record will be drawn up of the transfer, including any issues of discrepancy.
6.	Q: If a bank has a long position and offers cash to members in the FG but no member expresses interest, what should happen next?
	A: If no member in the FG is interested, the offer can be passed on to members of other FGs, as cash transactions among different FGs are supported. However, if no other bank takes up the offer, BI may accept the cash deposit under certain conditions, such as during major holiday periods.
7.	Q: If an FG member bank is suddenly hit by large-scale cash withdrawals and other FG members are short, what should be done?
	A: If a bank has a long or a short position, this information should be circulated and deliberated within the FG. However, if this fails to provide a solution, it is possible to exchange with another FG. This necessitates coordination from the FG coordinator. If the bank’s needs are still not met, only then should it contact the nearest BI office.
8.	Q: What happens when a bank frequently accumulates a long position? What action will BI take?
	A: If a bank does consistently record a long position, BI will examine the nature of bank cash positions within each area. The information thus gathered will form the basis for establishing an FG. If any bank does run up an overall long position, it could provide a cash holding function and in the long term be encouraged to establish itself as a cash centre.
9.	Q: When cash unfit for circulation is discovered upon collection from another FG member, can it be returned?
	A: That cash should preferably be accepted. In any event, it can later be deposited at BI.
10.	Q: If there is any failure to deliver on commitments or event of default, how will this be resolved?
	A: This will be specified in the By-Laws. In principle, sanctions must apply to any irregularity or violation, but what form these sanctions will take is still under deliberation. (*)