# Regulatory Summary for Micro Banking & Digital Sharia Banking  
**POJK No. 26 of 2022 – Sharia Rural Banks (Bank Pembiayaan Rakyat Syariah / BPRS)**

## 1. Regulatory Scope
- Regulates the **institutional, operational, and business framework** of:
  - Sharia Rural Banks (BPRS)
- Focuses on:
  - Micro and small-scale Sharia financing
  - Fund collection from the public
  - Sharia-compliant banking operations
- Serves as a **core legal foundation** for Sharia micro banking.

## 2. Permitted Business Activities
BPRS are allowed to conduct:
- Fund collection:
  - Savings based on wadiah or mudharabah
  - Time deposits based on mudharabah
- Fund distribution:
  - Financing using murabahah, mudharabah, musyarakah, ijarah, and other Sharia contracts
- Placement of funds in:
  - Islamic banks or Sharia-compliant instruments
- Fee-based services aligned with Sharia principles

> BPRS are explicitly focused on micro and community-based financing.

## 3. Prohibited Activities
BPRS are **not allowed** to:
- Accept demand deposits (giro)
- Conduct foreign exchange transactions
- Provide insurance services directly
- Operate outside Sharia principles

> These limitations shape system design and product boundaries.

## 4. Governance & Sharia Compliance
- Mandatory implementation of:
  - Good Corporate Governance (GCG)
  - Sharia governance
- Required governance bodies:
  - Board of Directors
  - Board of Commissioners
  - Sharia Supervisory Board (DPS)
- DPS responsibilities:
  - Ensure product and operational Sharia compliance
  - Review contracts, systems, and procedures

## 5. Risk Management & Internal Control
BPRS must implement risk management covering:
- Credit/financing risk
- Operational risk
- Liquidity risk
- Compliance and Sharia risk

Internal control requirements include:
- Clear segregation of duties
- Written policies and procedures
- Periodic risk evaluation

## 6. Capital & Financial Soundness
- Minimum capital requirements are enforced
- Capital adequacy must align with risk exposure
- BPRS must maintain:
  - Sound asset quality
  - Healthy liquidity
  - Sustainable profitability

> Financial soundness directly affects product expansion and digital readiness.

## 7. Reporting & Transparency
- BPRS must submit periodic reports to OJK:
  - Financial reports
  - Risk profile reports
  - Governance and Sharia compliance reports
- Reporting must be:
  - Accurate
  - Timely
  - Auditable

> This strongly encourages structured and digital reporting systems.

## 8. Technology & Digital Operations
- Use of information technology is permitted to:
  - Support operational efficiency
  - Improve customer services
- IT systems must ensure:
  - Data security
  - Transaction integrity
  - Audit trails
- Digital services must remain within approved BPRS business scope

## 9. Relevance to Micro & Digital Sharia Banking Systems
This regulation provides the legal basis for:
- Sharia micro core banking system design
- Digital savings and financing services
- Sharia contract-based transaction engines
- Compliance-driven reporting and audit modules
- Integration of DPS review into system workflows

> POJK No. 26 of 2022 defines the operational and compliance boundaries for digital Sharia micro banking in Indonesia.