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 already making huge profits.
Its chief executive officer Saravanan Thambirajah said financial reports for 2023 showed that among Malaysia’s top four banks by asset size, Maybank’s net profits grew by 17.5 per cent to RM9.35 billion. CIMB’s rose by 28.3 per cent to RM6.98 billion, while Public Bank’s increased by 9 per cent to RM6.6 billion. RHB Bank’s profits expanded by 4.8 per cent to RM2.81 billion.
Saravanan noted that according to Bank Negara Malaysia’s 2024 Payment Statistics, Payment Channels, Malaysians use ATMs twice a month on average.
While the net profits of banks are a positive sign that the financial industry and economy are healthy, Saravanan argued that imposing the fee is unfair, especially when viewed from the perspective of vulnerable populations, even if it is just RM1 per transaction.
“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,” he said.
“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,” Saravanan stated.
“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 for many, the fee is seen as another example of financial institutions prioritising profits over consumer welfare, especially when alternatives are not explored.
Saravanan further explained that the rising cost of living in Malaysia has direct and significant implications, especially for the B40 and M40 groups.
“However small, the abolition of the RM1 interbank ATM withdrawal fee will offer some relief against rising prices as it has burdened millions of Malaysians for years, especially low-income workers who rely heavily on cash transactions,” Saravanan said.
He added that 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.
Saravanan said that Fomca had raised concerns with Bank Negara and relevant stakeholders about banking fees and other financial challenges faced by consumers.
“There needs to be greater regulatory oversight, with Bank Negara playing a central role in ensuring fee structures are fair,” he added.
Late last month, the National Union of Bank Employees (NUBE) launched a signature campaign aimed at abolishing the RM1 interbank ATM cash withdrawal fee imposed by Bank Negara Malaysia.
The campaign seeks to gather one million signatures, and the petition will then be presented to the Finance Ministry to highlight the impact of this fee on the lower-income population in the country.
