PETALING JAYA: The Federation of Malaysian Consumers Associations (Fomca) has called on banks to absorb the RM1 charge for each interbank withdrawal instead of forcing customers to pay, especially since they are making huge profits.
Financial reports for 2023 showed that among Malaysia’s top four banks by asset size, Maybank’s net profits grew by 17.5% to RM9.35 billion, CIMB’s rose by 28.3% to RM6.98 billion, Public Bank’s increased by 9% to RM6.6 billion and RHB Bank’s expanded by 4.8% to RM2.81 billion.
According to Bank Negara Malaysia’s (BNM) 2024 Payment Statistics: Payment Channels, Malaysians use ATMs twice a month on average.
Assuming that all transactions involve interbank cash withdrawals, each individual would be charged RM24 per year just because their bank’s ATM is not available near them. This does not take into account customers who use multiple banks.
Fomca CEO Saravanan Thambirajah said while the net profits of banks are a positive sign that the financial industry and economy are healthy, imposing the fee is unfair, especially when viewed from the perspective of vulnerable populations, even if it is just RM1 per transaction.
“A common concern is that the fee disproportionately affects low-income earners and rural folk, who rely on cash transactions and need to withdraw small amounts of money frequently.
“When their bank’s ATM is not available, they are forced to use the ATMs of other banks, incurring the RM1 fee each time.”
He said many consumers have pointed out that financial institutions generate significant revenues through other means, such as interest rates, loan repayments and service charges, which makes the imposition of this additional fee excessive.
“For many, the fee is seen as another example of financial institutions prioritising profits over consumer welfare, especially when alternatives are not explored.”
He said Fomca has raised concerns with BNM and relevant stakeholders about banking fees and other financial challenges faced by consumers.
“There needs to be greater regulatory oversight, with BNM playing a central role in ensuring fee structures are fair.”
Association of Banks in Malaysia (ABM) executive director Dr Amina Kayani said banks charge the RM1 interbank withdrawal fee to help cover the cost associated with maintaining and enhancing the ATM network.
“This includes operational and maintenance expenses and infrastructure investments, ensuring the setup and upkeep of ATMs. The fee also contributes to providing customers with broader access to a larger network of ATMs.
“Security enhancements are another critical aspect. The fee also covers transaction processing costs.
“Customers could avoid this charge by using ATMs operated by their banks. We encourage customers to explore cashless alternatives.”
Economic analyst Dr Aimi Zulhazmi Abdul Rashid said while there are costs involved in the information technology and security infrastructure that is needed for daily account reconciliation between banks and BNM, such expenses should not be dumped onto consumers.
“To meet the goals of the government’s economic plan for high-income status by 2027, policies must address the needs of all segments of society. The public deserves to know what the actual cost of a transaction is as it concerns their cost of living.”
