THE IMPLEMENTATION OF AGENCY PRINCIPLES IN BRANCHLESS BANKING SERVICES

Abstract

The main function of Indonesian banking is accepting deposit and lending loans to support the implementation of national development in order to improve economic growth and national stability. In order to achieve the main objective of banking, bank as the agent of development and service agents should maximize its role that provide excellent service to the community. One of the bank services is to provide the convenience of banking facilities through banking agents, which is an extension of the bank. The regulation concerning branchless banking services are Indonesia Financial Authority Regulation No. 19/POJK.03/2014 concerning Smart Act Branchless Banking Service for Financial Inclusion and Indonesia Financial Authority Circular Letter No. 6/SEOJK.03/2015 concerning Smart Act Branchless Banking Service for Financial Inclusion. However, the presence of these branchless banking services agents is not followed by clear definition of agent/agency and adequate regulation so there is no standard in implementing agency law. This article examines further the implementation of the agency principles in banking agency agreement by taking the example of branchless banking services agency agreement between Bank Negara Indonesia with Arindo Pratama by limiting on the implementation of the basic principles of agency in branchless banking services agency and the relevance of the implementation of agency principle within branchless banking agency agreement. Keywords: Agent; Agency; Branchless Banking; Financial Inclusion