PETALING JAYA: Kepong MP Lim Lip Eng opined that the present Automated Teller Machine (ATM) RM1 interbank withdrawal fee is entirely unfounded and unjustifiable as it adds to the burden faced by low-income earners who make up some 85% of Malaysia’s population.
“I have discussed the matter at length with officials from the Ministry of Finance and they agree that the fee cannot be rationalised due to huge profits earned by Malaysian banks last year alone, in addition to placing further strain on the B40 and M40 groups in the country.
“Banks earned huge profits, some in the billions of ringgit in 2024 which seems to have followed the trend of previous years and it only makes sense for the banks to absorb the cost involved (the RM1 ATM withdrawal fee) and not pass it on to the consumer. This is grossly unfair,” he said in a statement.
Lim added that he is currently drafting the necessary questions to be submitted to Parliament for the matter to be addressed at its next sitting in February.
“Let the matter be discussed and debated in the Dewan Rakyat, and hopefully we reach a favourable end in the interest of the people.”
Last month, Selayang MP William Leong Jee Khin had reportedly said the RM1 interbank withdrawal ATM fee has sparked concern over its impact on Malaysians, particularly low-income earners and the cost should be absorbed by the banks.
At present, the RM1 fee for cash withdrawals at interbank ATMs is charged by Payments Network Malaysia Sdn Bhd (PayNet) for interbank transactions, which is owned collectively by Bank Negara Malaysia (BNM) – as its largest shareholder – along with 11 other Malaysian banks, as stated on PayNet’s website.
This fee was waived during the COVID-19 pandemic in April 2020 but was reinstated in February 2022.
Last December, the National Union of Bank Employees (NUBE) launched an initiative urging Payments Network Malaysia Sdn Bhd (PayNet) and its largest shareholder, Bank Negara Malaysia (BNM) to abolish the RM1 ATM interbank withdrawal fee for cash transactions.
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NUBE general secretary J. Solomon stated many low-income earners are strained due to the rising cost of living which has caused them to face greater hardship in recent times.
The fee is an unnecessary financial strain, saying the additional cost can quickly accumulate for those with limited resources.
NUBE stands by the fact that rising costs in Malaysia are disproportionately affecting the B40 group, worsening financial hardships and contributing to various social, health, and psychological challenges.
NUBE has launched a petition campaign entitled #HapusCajRM1 on its website at https://www.nube.org.my/hapus_caj_rm_one and Change.Org at https://www.change.org/p/hapuscajrm1-abolish-the-unjust-rm1-atm-interbank-fee-for-all-malaysians.
All Malaysians are urged to support the cause to abolish the RM1 ATM interbank withdrawal fee.
