Definition
A Bank Giro Credit (BGC) is a preprinted paper slip used to facilitate the payment of cash or cheques into a specified bank account. Often provided by banks to their customers, BGCs are typically found at the back of chequebooks or at the bottom of utility and credit card bills. They allow the payer to make payments into another account, often their own. It is important to note that a completed BGC itself is not a payment instrument and carries no value other than as a vehicle for the cash or cheques that accompany it.
Examples
Example 1: Utility Bill Payment
John receives his monthly utility bill, which includes a preprinted BGC at the bottom. John fills in his details and the payment amount on the BGC and accompanies it with a cheque for the bill amount. He submits it at his local bank branch, which then processes the payment into the utility company’s bank account.
Example 2: Personal Chequebook Usage
Sarah has a chequebook from her bank, and each page includes a BGC at the back. She fills out the BGC when she needs to deposit a cheque she received from her friend into her own bank account. She goes to her bank, and the teller processes the cheque using the BGC.
Frequently Asked Questions
What happens to my Bank Giro Credit slip after submission?
When you submit a BGC with cash or a cheque at a bank, the bank processes the accompanying payment and the BGC, which is then used to ensure the payment is routed to the correct account as specified.
Can a BGC be used without cash or a cheque?
No, a BGC is not of any value without the cash or cheque accompanying it. It acts merely as a tool to facilitate the deposit.
Where can I typically find BGC slips?
BGC slips are commonly found in the back of chequebooks and on utility and credit card bills provided by various service providers.
Related Terms
- Credit Transfer: A direct bank transfer from one account to another.
- Giro: A system of direct debit from bank accounts to pay bills.
- Cheque: A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer.
Online References
- Investopedia - Bank Giro
- Bank of England - Conceptual Framework
- Government Financial Services - Explanation of BGC
Suggested Books for Further Studies
- “Accounting All-in-One For Dummies” by Kenneth W. Boyd
- “Principles of Accounting” by Belverd E. Needles, Marian Powers, and Susan V. Crosson
- “Financial Accounting: Tools for Business Decision Making” by Paul D. Kimmel, Jerry J. Weygandt, and Donald E. Kieso
Accounting Basics: “Bank Giro Credit” Fundamentals Quiz
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